Intel public policy: How Intel promotes innovation worldwide.
Intel is a world leader in the design and manufacturing of essential technologies that power the cloud and an increasingly smart and connected world. As a high-tech manufacturer, Intel operates globally, yet the majority of its advanced manufacturing and research and development (R&D) is done in the United States. Intel is one of the largest investors in R&D among U.S. publicly traded companies and invests heavily in the U.S. economy with capital and jobs. Intel supports a stable tax system that encourages U.S. innovation and manufacturing. Moreover, as a multi-national corporation operating on a global stage, Intel encourages a U.S. tax policy that provides a competitive global tax system for U.S. headquartered companies.
Favorable treatment of R&D activities: Intel invests nearly $10 billion a year in U.S. research and development. Pro-innovation tax policy helps keep the U.S. competitive in the global race for R&D investment dollars. In 2017, the U.S. share of global R&D investments was 25%, a drop of 12% over 16 years. Tax policy changes are needed to support U.S. companies' investments in U.S. innovation. Accordingly, Intel is a part of the leadership team of the R&D Coalition, which supports tax incentives that encourage business to invest in the research and development of new products and ideas. For example, we support the repeal of the 2022 requirement to amortize deductions for R&D expenditures. Additionally, we support preserving the current permanent R&D alternative simplified credit, which helps keep the U.S. competitive in the global race for R&D investment dollars.
A balanced and stable international tax system: Intel supports a balanced international tax system that is stable and enhances global competitiveness. Intel supports tax provisions like the Foreign Derived Intangible Income (FDII) that encourage U.S. based manufacturing and innovation. The FDII is a part of a balanced system that discourages abusive tax practices and allows companies to effectively operate and compete globally. We support the maintenance and strengthening of tax incentives for U.S. investment such as FDII.
Minimize double taxation: The U.S. currently has tax treaties with 67 countries and has several treaties or amendments pending approval before the U.S. Senate. The negotiation and ratification of tax treaties prevents countries from taxing the same income twice and strengthens international coordination of tax laws. The U.S. government should continue to pursue mechanisms that eliminate double taxation and ease compliance burdens by establishing clear lines of communication and coordination among tax administrators. We support good global tax administration through continued investment in our U.S. tax treaty network.
Transparency with Tax Authorities: The Organization for Economic Cooperation and Development (OECD) developed a country-by-country reporting system in which the U.S. government (and thereby U.S. taxpayers) participate. This reporting process was developed in part to aid tax authorities in their audit selection processes. Under the OECD agreement, this reporting information is kept with tax authorities who have the tax expertise to understand and assess this business-sensitive tax information. Intel supports the business information provided as part of the country-by-country reporting system remaining exclusively with government tax authorities.