Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/190983
Authors: 
Bornemann, Tobias
Laplante, Stacie K.
Osswald, Benjamin
Year of Publication: 
2018
Series/Report no.: 
arqus Discussion Paper 234
Abstract: 
We investigate whether the adoption of an intellectual property box increases innovative activity and what type of firms benefit. We examine the adoption of the intellectual property box in Belgium because it allows us to cleanly identify the impact on innovative activity and effective tax rates. Our results indicate an overall increase in innovative activity as proxied by patent grants, the efficiency with which firms apply for and receive patents, and employment. We also provide evidence that, while firms with patents on average enjoy lower effective tax rates, the greatest financial benefits accrue to multinational firms without income shifting opportunities, followed by domestic firms. Multinational firms with income shifting opportunities do not significantly benefit from the intellectual property box.
Subjects: 
IP boxes
tax incentive
tax avoidance
income shifting
JEL: 
H21
H25
Document Type: 
Working Paper
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