Novartis Official: R&D Credit Should Cover Contract Research

The key issue for multinational pharmaceutical companies deciding where to locate a new research facility is whether the jurisdiction has a research and development credit that is available for contract as well as proprietary research, a Novartis AG official said.

Barbara Kessler, head of group tax insurance at Novartis AG, said Aug. 31 that the R&D credit must cover contract research activities to make the jurisdiction a viable candidate for the research facility.

Speaking on a panel addressing R&D incentives at the annual International Fiscal Association Congress in Basel, Switzerland, Kessler said a company “would not choose a jurisdiction whose ...