I don’t understand the tax implications. Employee salary is subtracted from gros... | Hacker News

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		bko on Nov 23, 2024 \| parent \| context \| favorite \| on: Mercedes spends $8bn/year on R&D I don’t understand the tax implications. Employee salary is subtracted from gross earnings and not taxed. You have employment taxes but you have to pay those regardless. So how is an employee salary categorized as r&d a tax benefit?

rich_sasha on Nov 23, 2024 [–]

R&D expenditure often let's you write off more than 100% of the cost for tax purposes, to encourage it.

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