Corporate tax benefits as behavioural policy tools: fiscal innovation and evidence from Portugal

Purpose This study aims to analyse the evolution and increasing concentration of corporate tax benefits in Portugal between 2013 and 2023, focusing on innovation- and investment-related instruments. It examines how fiscal mechanisms such as SIFIDE (Tax Incentive System for Corporate R&D) and RFAI (Fiscal Regime for Investment Support) operate as behavioural levers for sustainable economic transformation, aligning with Sustainable Development Goal (SDG) policy objectives. Design/methodology/approach A quantitative and exploratory design was adopted, using official administrative data from the Portuguese Tax and Customs Authority. Descriptive statistics, one-way ANOVA and linear regressions were used to assess benefit distribution, structural differences and temporal trends. Visual analysis supported the identification of fiscal concentration dynamics and policy inflection points. Model assumptions were tested to ensure statistical robustness. Findings Deductions from tax liability became the dominant benefit type, representing most corporate income tax (IRC)-related tax expenditure. Within this category, SIFIDE accounted for 43.3% of total allocations, confirming its structural centrality and behavioural role. RFAI represented 28.0%, retaining relevance as a complementary investment tool. Regression results show that SIFIDE experienced significant and sustained growth, while other instruments declined or stagnated. These findings reveal a pattern of fiscal targeting through structurally embedded incentives. Originality/value Grounded in empirical evidence, this study proposes a conceptual framework positioning fiscal innovation as a strategic driver of behavioural change. It identifies three guiding principles, impact, simplicity and applicability, and highlights SIFIDE’s potential as a policy lever for SDG-aligned transformation. It contributes to innovation governance literature and suggests avenues for future research on equity, ESG alignment and behavioural effectiveness.