Organisation for Economic Co-operation and Development

This database presents the 2018 edition of OECD time-series indicators of implied R&D tax subsidy rates for OECD member countries and five non-member economies (Brazil, People's Republic of China, Romania, Russian Federation, and South Africa) over the period 2000-2018, drawing on data collected in the OECD-NESTI R&D tax incentive surveys from 2007 to 2018. The 2018 edition of RDTAXSUB contains time-series estimates that are based on headline tax credit and allowance rates, by firm size and profitability scenario. Due to limited historical data availability, the estimates are not adjusted for provisions that bound the tax benefits received by firms (e.g. ceilings, thresholds). They therefore provide an upper bound for the marginal tax subsidy implied by R&D tax relief measures across countries over time. These estimates should not be confused with separate contemporary cross-sectional OECD estimates of marginal tax subsidy rates (OECD, 2018) that compute adjusted (weighted) tax credit/allowance rates for a number of countries based on available information on the proportion of eligible R&D subject to different marginal levels of relief (see 2017).The tax subsidy rate is defined as 1 minus the B-index, a measure of the before-tax income needed by a “representative” firm to break even on USD 1 of R&D outlays (Warda, 2001). As tax component of the user cost of R&D, the B-Index is is directly linked to measures of effective marginal tax rates. Measures of tax subsidy rates such as those based on the B-index provide a convenient proxy for examining the implications of tax relief provisions. These provide a synthetic representation of the generosity of a tax system from the perspective of a generic or model type of firm for the marginal unit of R&D expenditure. To provide a more accurate representation of different scenarios, B-indices are calculated for “representative” firms according to whether they can claim tax benefits against their tax liability in the reporting period (OECD, 2013). When credits or allowances are fully refundable, the B-index of a firm in such a position is identical to the profit scenario. Carry-forwards are modelled as discounted options to claim incentives in the future, assuming a constant annual probability of returning to profit of 50% and a nominal discount rate of 10%. For general and country-specific notes on the time-series estimates of implied marginal tax subsidy rates on R&D expenditures (based on the B-index), see http://www.oecd.org/sti/rd-tax-stats-bindex-notes.pdf.

These data are part of a larger database, hosted on a different website, which includes both quantitative and qualitative data, as well as graphs.

It provides a faithful image, to the greatest extent possible, of the aggregates and balances of the general government sector Data are also available, for most countries, for the sub-sectors of general government.

This database provides a set of indicators that reflect the level and structure of central government support for business R&D; in form of R&D; tax incentives and direct funding across OECD member countries and ten non-member economies (Argentina, Brazil, Bulgaria, Croatia, Cyprus, People's Republic of China, Romania, Russian Federation, and South Africa). This includes time-series indicators of tax expenditures for R&D;, based on the latest 2017 OECD data collection on tax incentive support for R&D; expenditures that was completed in July 2017. These estimates of the cost of R&D; tax relief have been combined with data on direct R&D; funding, as compiled by National Statistical Offices based on reports from firms, in order to provide a more complete picture of government efforts to promote business R&D.; The latest indicators and information on R&D; tax incentives also feature on the dedicated OECD website Measuring R&D; tax incentives.Tax expenditures are deviations from a benchmark tax system (OECD, 2010) and countries use different national benchmarks. Available estimates typically reflect the sum of foregone tax revenues – on an accruals basis – and refunds where applicable, with no or minimal adjustments for behavior effects. Some countries only report claims realised in a given year (cash basis), while others report losses to government on an accrual basis, excluding claims referring to earlier periods and including claims for current R&D; to be used in the future. For general and country-specific notes on the estimates of government tax relief for R&D; expenditures (GTARD), see http://www.oecd.org/sti/rd-tax-stats-gtard-notes.pdfThe sources for the other indicators (direct funding of BERD, BERD and GDP) include the OECD databases on Main Science and Technology Indicators and Eurostat R&D; statistics.

Data on government sector receipts, and on taxes in particular, are basic inputs to most structural economic descriptions and economic analyses and are increasingly used in international comparisons. This annual database presents a unique set of detailed and internationally comparable data on both tax and non-tax revenue in a common format for African countries participating in Revenue Statistics in Africa. Click to collapse Direct source Country representatives authorized to obtain revenue data from the appropriate government departments and responsible for compiling the data and preparing data tables that adhere to the OECD tax classification.