Finance Minister Michael McGrath said tax competition is an important policy tool for smaller countries. Photo: Getty Images
Ireland has one of the world’s lowest tax rates on firms’ research and development spending, a report has found, but France offers more generous R&D incentives overall.
The report by the Paris-based Organisation for Economic Cooperation and Development (OECD) reveals that Ireland’s average effective tax rate on R&D last year was negative, at -3.15pc, lowering the tax rate on R&D spending by more than 14 percentage points.