Lawmakers Want EU to Give Guidance on R&D Tax Breaks

Nov. 30, 2021, 4:55 PM

European Union-level guidance on tax breaks for corporate research is needed to prevent the bloc’s countries undermining one another, two European Parliament lawmakers said today.

There is “little evidence” that some research-related tax breaks, such as patent box schemes—which apply low rates to income from intellectual property—actually encourage corporate research, Markus Ferber, a German center-right lawmaker who sits on the Parliament’s tax subcommittee, said at an EU Tax Observatory seminar Tuesday.

  • Subsidies are more effective than tax breaks at promoting research and development, said Paul Tang, a Dutch MEP who chairs the tax subcommittee. “We ...

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