Sweden boosts innovation with R&D tax incentive experiences from EU and OECD  

Another step in the right direction – Sweden boosts innovation with R&D tax incentive experiences from EU and OECD  

The Swedish government has taken a significant step towards promoting research and development (R&D) by issuing an additional directive to the already existing government enquiry that is reviewing the current issues of the R&D tax relief. This initiative is warmly welcomed by the business community. 

By tapping into the experiences and best practices from EU and OECD countries, Sweden seeks to optimize its R&D tax incentive framework and its attractivity. This venture involves a comprehensive assessment of existing tax incentive schemes, along with the exploration of new methods to further encourage innovation and R&D investments. Such reliefs include, among others, refundable tax credit and the designing of a tax incentive that is primarily based on companies’ R&D expenses, offering a possibility of reduced corporate tax. Looking at the other countries of the OECD, these initiatives can not only lead to the retention of the R&D in Sweden but also to a boost of the Swedish attractivity and innovation by strengthening Swedish competitiveness and fuel a culture of innovation. This will, furthermore, nurture economic growth, job creation, and the development of cutting-edge technologies. 

In conclusion, Leyton welcomes the additional directive, to be presented no later than January 19, 2026. Worth mentioning is that the enquiry will still release a proposition regarding their first assignment in January 2025.  We are certain that all these initiatives will have a positive impact on Swedish innovation, but also enhance competitiveness and secure Sweden’s position as a prosperous R&D nation at the forefront of innovation.