Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/315309 
Year of Publication: 
2024
Citation: 
[Journal:] International Tax and Public Finance [ISSN:] 1573-6970 [Volume:] 31 [Issue:] 1 [Publisher:] Springer US [Place:] New York, NY [Year:] 2024 [Pages:] 203-242
Publisher: 
Springer US, New York, NY
Abstract: 
We discuss corporate tax effects on multinationals’ R&D. Theoretically, we find that a host country’s tax increase may boost local R&D expenditure: while R&D becomes deductible at a higher rate, this higher rate may not apply to all R&D returns. First, as R&D creates a public good within the MNE, some R&D returns are taxed at other countries’ tax rates. Second, some of the R&D returns are taxed at a lower IP regime tax rate. The positive tax rate effect is empirically supported by country-by-country R&D data of U.S.-owned subsidiaries for countries that have an IP regime.
Subjects: 
Corporate income tax
R&D
Intellectual property regimes
Patent box
International profit shifting
JEL: 
H25
H26
O3
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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