Comment by Lazare

> I don't know of any jurisdiction (apart from the US, apparently) which allowed 100% non-amortized tax credit for loosely defined R&D salaries.

This is not about tax credits, this is about whether salaries are an expense. If Widget Inc makes and sells a bunch of widgets for $100m, and then they pay $20m in rent, and $30m for materials, and $40m for salaries, with $10m left over, with no other complexities (eg, interest, depreciating factory equipment, etc.), then is their profit this year:

1) $10m (or maybe a bit less, if they got any tax credits)?

2) Some other larger number closer to $50m?

You'd be hard pressed to find many jurisdictionns where the answer isn't option 1. I certainly don't know any offhand.