Welcome proposal to boost competitiveness and attractiveness
Improved possibilities for R&D deductions and expert tax.
In June 2023, the government appointed an inquiry to look at the conditions for the so-called R&D deduction and the expert tax rules. The committee has now delivered its interim report, which is positive news. The rules have been complicated and too narrow, but the new proposals broaden the possibilities and create clarity. The proposals represent important steps for the business community that are needed to strengthen the Swedish research and innovation climate. The Minister for Finance, Elisabeth Svantesson, emphasizes that it is about making it easier for companies in Sweden to invest in research and development and to attract and retain international key competence in Sweden, which TechSverige warmly welcomes.
The proposals include, among others
- a broader, simpler and clearer definition of research and development, the so-called R&D deduction. For example, it is proposed that the requirement for research and development work to be systematic and qualified be removed. The proposals increase who is covered by the rules, reduce the administrative burden on companies and create greater legal certainty. Three very positive effects. The ceiling for the R&D deduction is proposed to be neither raised nor abolished.
- that the procedure for claiming R&D deductions should not be changed, meaning that deductions will continue to be made without any requirement for an approved application or registration.
- an increase in tax relief from the current 25 to 30 percent of salary, the so-called expert tax rules. The increase means that we are in a better position in an international comparison and that Sweden will thus have better conditions to attract and retain international expertise.
- The report's proposals are in line with what TechSveriges has been pushing for. We now look forward to the government taking the final steps and making the decisions to simplify and expand the use of R&D deductions and the expert tax. A strong research and innovation climate and good conditions for companies to build knowledge are important for Swedish competitiveness and sustainable societal development," says Pia Högset, industrial policy expert at TechSverige.