Corporation Income Tax Treatment of Investment and Innovation Activities in Six Countries

摘要

The corporation income tax treatment of innovation activities in Canada, the Federal Republic of Germany, France, the United Kingdom, Japan, and the United States, is documented. The size of the corporation income tax relative to gross domestic product and to total taxation is noted, as is the source of law for the corporation income tax and the categories of taxpayers and kinds of firms subject to it. The treatment of income and costs associated with business investment are outlined. Tax provisions relating to interest, dividends, capital gains and losses, operating losses, depreciation, increases in the value of inventories, and investment incentives are covered. Also summarized are the tax treatment of income and costs associated with research and development, investment in plant and equipment embodying new technology, sale or license of technology, and donations to and activities of nonprofit scientific organizations.