Research and development tax incentive
Did you know that starting from the 2023 tax year, a completely new tax incentive has been introduced for research and development activities? Companies can currently receive an additional deduction of up to €1,000,000 on their taxes, potentially saving up to €200,000 in tax payments. This is an opportunity you don’t want to miss.
Below is a summary of additional information on the combined R&D deduction (R&D) enabled by the law. In our blogs and webinars, we discuss this topic by combining our own experience with guidance from the Finnish Tax Administration.
The R&D combined deduction in a nutshell
Since the 2023 tax year, all companies operating in Finland that carry on a business or agricultural activity have been eligible to claim the R&D combined deduction. The size or industry of the company is irrelevant.
A prerequisite for the deduction is that the research and development activities are related to the company’s own business operations. The combined deduction consists of two components.
General Additional Deduction:
- The amount of the general additional deduction is 50% of eligible R&D salary and purchased service expenses.
- The minimum amount per tax year is €5,000 and the maximum amount is €500,000.
- Companies have been able to claim the deduction for the first time in the 2023 tax year.
Additional (Incremental) Deduction:
- The amount of the deduction is 45%.
- The deduction can be claimed if R&D expenses have increased compared to the previous tax year.
- The maximum amount per tax year is €500,000, with no minimum threshold.
- Companies can claim the deduction for the first time in the 2024 tax year.
Take advantage of the research and development tax incentive
Take advantage of the research and development tax incentive
We want to help you!
At Svalner Atlas, we want to support you and your company in all tax-related matters. You are also welcome to contact us if you are exploring options for organizing your company’s research and development activities.
We have comprehensive expertise in tax matters and tax planning for companies of all sizes, as well as in various areas of taxation and law. We assist companies and private individuals in a client-oriented manner to find the best solutions for their specific situation, taking into account changing regulations and current case law.
How could we assist you? Read more about our services.
