Asia

Israel has a corporate tax rate of 25% of business income. The Office of the Chief Scientist (OCS) of the Ministry of Trade and Labor implements the Alternative tax program and strategic program, both acting as mechanisms to encourage and support industrial R&D.

Japanese R&D tax incentives are incremental and volume based with a special non-refundable tax credit extending to companies that have increased their R&D expenses. R&D incentives are a fundamental policy for business in Japa

The Malaysian government offers a wide range of incentives to attract investments in R&D, including Investment Tax Allowance (ITA), Super deductions and enhanced benefit for Pioneer Status (PS). There are numerous government funding programs to support various industries.

The Russian government is focusing on changing from a resource-based economy to one renowned and characterized as knowledge, innovation and technology-led. R&D tax incentives are very important in stimulating investment in R&D and furthering economic growth in Russia.

South Korea offers a general tax credit for R&D expenditures as well as an additional credit for expenses incurred for investments in R&D equipment. These incentives aim to encourage the investment in R&D activities or facilities that enhance productivity and competitiveness of national industries.

R&D incentives available in the Philippines are to promote investment in specific industries, and to benefit all persons engaging in R&D activities. R&D expenditure treated as a current expense is deductible at 100% or a deferred expense ratably distributed over a period of no less than 60 months.

The Taiwanese government government offers an incentive of 15% of total R&D expenditure to be claimed as a tax credit against the total corporate tax payable for the year it is incurred. The credit cannot be carried forward and is capped at 30% total corporate tax payable.

 
In Thailand to be eligible to claim the incentives available for R&D, a company or government entity must be approved by the Revenue Department as a Thai R&D Service Provider. A 200% deduction is available for eligible expenditure incurred on R&D carried out in Thailand for those approved.

Tax exemptions or reduced tax rates are available for companies that derive income from performing R&D, the sale of product during test production and products made from new technology. An import duty exemption is available for investment projects and goods imported for direct use in R&D.

There are no current R&D based tax incentive schemes for Indonesia, however tax incentives are available for companies seeking to invest in new or improved activities for expansion of the business.

The Indian Government provides a weighted tax deduction to companies with R&D approved by the Department of Scientific & Industrial Research (DSIR).

Singapore offer an R&D Tax Incentive of 100% as well as an enhanced tax deduction of 250% for local expenditure incurred for staff salaries and consumables. This can be claimed for R&D performed in-house, outsourced or as part of a cost-sharing agreement, providing that the taxpayer is the beneficiary of the R&D activities.