Effective tax rates for expenditure based tax incentives - Corporate tax statistics — Implicit subsidy (EATR) by country
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...
What the numbers show
Effective tax rates for expenditure based tax incentives - Corporate tax statistics — Implicit subsidy (EATR) is currently reported for 42 countries. The highest value is 0 Percentage of taxable income in Colombia; the lowest is -17.6 Percentage of taxable income in Poland.
The median across all reporting countries is -8.5 Percentage of taxable income, and the mean is -9 Percentage of taxable income.
Over the past decade 7 countries rose and 18 fell. The largest increase was in Colombia (up 100.0%), and the largest decrease in Denmark (down 311.1%).
Effective tax rates for expenditure based tax incentives - Corporate: full country ranking
| # | Country | Latest | Year | 10-year change | Trend |
|---|---|---|---|---|---|
| 1 | Colombia | 0 Percentage of taxable income | 2025 | up 100.0% | volatile |
| 1 | Türkiye | -2.64 Percentage of taxable income | 2025 | up 2.2% | flat |
| 2 | Viet Nam | -7.8 Percentage of taxable income | 2025 | — | volatile |
| 12 | Denmark | -1.11 Percentage of taxable income | 2025 | down 311.1% | volatile |
| 13 | Mexico | -1.36 Percentage of taxable income | 2025 | unchanged | flat |
| 14 | Cyprus | -1.46 Percentage of taxable income | 2025 | — | volatile |
| 15 | Estonia | -2.07 Percentage of taxable income | 2025 | — | volatile |
| 16 | United States of America | -3.46 Percentage of taxable income | 2025 | down 0.3% | flat |
| 17 | Croatia | -3.78 Percentage of taxable income | 2025 | unchanged | flat |
| 18 | Romania | -4.68 Percentage of taxable income | 2025 | down 0.2% | flat |
| 19 | Australia | -4.8 Percentage of taxable income | 2025 | unchanged | flat |
| 20 | Italy | -5.27 Percentage of taxable income | 2025 | down 201.1% | falling |
| 21 | Finland | -5.59 Percentage of taxable income | 2025 | — | volatile |
| 22 | Sweden | -5.72 Percentage of taxable income | 2025 | down 102.1% | falling |
| 23 | Canada | -6.33 Percentage of taxable income | 2025 | down 6.6% | flat |
| 24 | Netherlands | -7.12 Percentage of taxable income | 2025 | up 1.1% | flat |
| 25 | South Africa | -7.29 Percentage of taxable income | 2025 | up 3.6% | flat |
| 26 | Belgium | -7.5 Percentage of taxable income | 2025 | down 6.5% | falling |
| 27 | Japan | -8.14 Percentage of taxable income | 2025 | unchanged | flat |
| 28 | Austria | -8.4 Percentage of taxable income | 2025 | unchanged | flat |
| 29 | United Kingdom of Great Britain and Northern Ireland | -8.44 Percentage of taxable income | 2025 | down 52.1% | falling |
| 30 | New Zealand | -8.57 Percentage of taxable income | 2025 | down 1.3% | flat |
| 31 | Hong Kong, China | -8.91 Percentage of taxable income | 2025 | unchanged | flat |
| 32 | Thailand | -9.07 Percentage of taxable income | 2025 | unchanged | flat |
| 33 | Hungary | -9.69 Percentage of taxable income | 2025 | up 20.8% | rising |
| 34 | Germany | -10.37 Percentage of taxable income | 2025 | — | falling |
| 35 | Norway | -10.83 Percentage of taxable income | 2025 | down 5.6% | flat |
| 36 | Brazil | -11.13 Percentage of taxable income | 2025 | unchanged | flat |
| 37 | Malaysia | -11.9 Percentage of taxable income | 2025 | unchanged | flat |
| 38 | Czechia | -11.94 Percentage of taxable income | 2025 | down 10.4% | falling |
| 39 | Greece | -12.41 Percentage of taxable income | 2025 | down 205.7% | falling |
| 40 | Slovenia | -12.54 Percentage of taxable income | 2025 | down 15.8% | falling |
| 41 | Singapore | -13.77 Percentage of taxable income | 2025 | unchanged | flat |
| 42 | Spain | -14.53 Percentage of taxable income | 2025 | unchanged | flat |
| 43 | Iceland | -15 Percentage of taxable income | 2025 | down 25.0% | falling |
| 44 | Chile | -15.1 Percentage of taxable income | 2025 | up 1.5% | flat |
| 45 | Peru | -15.55 Percentage of taxable income | 2025 | down 20.0% | falling |
| 45 | France | -15.55 Percentage of taxable income | 2025 | up 11.8% | rising |
| 47 | Ireland | -16.39 Percentage of taxable income | 2025 | down 9.3% | falling |
| 48 | Portugal | -16.98 Percentage of taxable income | 2025 | unchanged | flat |
| 49 | Lithuania | -17.29 Percentage of taxable income | 2025 | down 6.7% | flat |
| 50 | Poland | -17.6 Percentage of taxable income | 2025 | down 63.6% | falling |
Regions and income groups
Aggregates are excluded from the country ranking above so that a region can never outrank a country.
- Korea -2.81 Percentage of taxable income
- China (People's Republic of) -14.83 Percentage of taxable income
- Slovak Republic -14.95 Percentage of taxable income
About this data
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.