Effective Tax Rates For Expenditure Based Tax Incentives - Corporate Tax Statistics

This table reports synthetic tax policy indicators that capture the effect of expenditure-based R&D; tax incentives on firms’ investment costs:

• The EATR for R&D; measures the impact of taxation on R&D; investments that earn an economic profit.
• the user cost of capital for R&D; measures the return that a firm needs to realise on an R&D; investment before tax to offset all costs and taxes that arise from the investment, making zero economic profit.

Further methodological information is available in the explanatory annex.