Tax incentives

In addition to being a way of raising revenues for necessary public expenditures, tax systems continue to be used by governments to influence the behaviour of individuals and businesses. Around 40 percent of contributors to the Paying Taxes data indicated that their economies have Small and Medium sized Enterprise (SME) and Research and Development (R&D) incentives included within their tax systems. The proportion saying that they have these incentives is highest in the OECD, G8 and BRIC groupings.