A simplified R&D tax credit and more favorable expert tax rates will strengthen the tech industry’s innovative capacity
TechSverige welcomes the government’s proposals to simplify the R&D tax credit and strengthen the expert tax. These proposals are a step in the right direction toward strengthening Sweden’s competitiveness and improving the conditions for research, development, and innovation.
The current regulations governing the R&D tax credit have caused significant implementation challenges for many knowledge-intensive companies in the tech, IT, and telecom sectors, particularly in software development and other advanced technology development. Broadening the definitions of research and development, expanding the range of eligible activities, and removing the requirement for at least 15 hours of R&D work per month are therefore positive changes that can reduce the administrative burden and increase predictability for companies.
For the reform to be fully effective, it must be applied in a predictable manner so that companies can easily understand which research and development activities qualify for the tax credit. At the same time, the administrative requirements must be proportionate to the business’s operations so that the incentives can actually be utilized in practice.
It is also encouraging that the government has made it clear that the Swedish Tax Agency is to seek expert advice when assessing R&D activities. This can help ensure greater legal certainty and more accurate assessments, particularly for companies engaged in advanced software and technology development.
We also welcome the improved rules regarding the expert tax. Sweden’s ability to attract and retain top international talent is crucial to companies’ ability to invest in research and development. In an era of fierce global competition for talent, competitive conditions are needed to encourage more researchers, developers, and technical experts to choose Sweden.
Ana Andric, economic policy expert
Peter Kjäll, economic policy expert