Tax Benefits of Conducting Research and Development at Home and Abroad

calendar icon 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?

Session Topics:

  • 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