Taxation and Technology Transfer: Key Issues

The current study was undertaken in pursuit of UNCTAD's mandate to "identify and disseminate information concerning existing home-country measures that encourage transfer of technology in various modes to developing countries, in particular to the least developed countries" (Bangkok Plan of Action, TD/386, paragraph 118) and "draw lessons from successful experiences with the transfer and diffusion of technology through FDI and other channels" (Sao Paulo Consensus, TD/410, paragraph 56 and 57). The report gives an overview of the impact of taxation in developed and developing countries on the transfer of technology and seeks to shed light on the formulation of tax policies that could facilitate technology transfer. The study presents extensive (but not exhaustive) national tax policy options designed to facilitate technology transfer, along with several government initiatives, measures and institutions, as well as incentives provided to industry aimed at facilitating the transfer of technology. The study is intended as a resource for governments, institutions, industries, researchers and policy makers on taxation and technology export and import.