You’re not wrong, but R&D is mostly another operating expense which lowers net income. Net income is what’s taxed. Companies could spend this money on building another office or salaries for sales staff instead which would both lower net income.
Some jurisdictions may have special tax considerations for narrowly defined R&D work, but it’s mostly companies spending money to try and make more money. Sometimes that pans out and other times it doesn’t.
Bestaa@lemmy.world 1 year ago
You’re not wrong, but R&D is mostly another operating expense which lowers net income. Net income is what’s taxed. Companies could spend this money on building another office or salaries for sales staff instead which would both lower net income.
Some jurisdictions may have special tax considerations for narrowly defined R&D work, but it’s mostly companies spending money to try and make more money. Sometimes that pans out and other times it doesn’t.
Sgt_choke_n_stroke@lemmy.world 1 year ago
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Cooperate R and D