Tax Benefits of Conducting Research and Development at Home and Abroad
February 25, 2021
Innovation is a key driver to a company’s growth in products and services. Today’s multinational companies conduct research and development activities (“R&D”) both here in the U.S. and in other countries closer to customer markets. As you engage in this business, you may ask yourself some of the following questions:
What are the advantages of carrying out R&D in the U.S. or in other countries?
What tax incentives and regimes can benefit companies engaged in innovation?
What strategies can multinational companies follow in determining the best location for holding intellectual property?
Overview and applicability of the U.S R&D tax credit
Outlook on U.S. R&D tax credits under the Biden administration
Review of European regimes for refundable R&D tax credits
Considerations for transfer pricing for research costs and monetizing intellectual property
Walk through U.S. anti-deferral rules including Subpart F and GILTI
Interplay of R&D credits and foreign tax credits and their ordering rules
Highlights of European Union directives and OECD guidance