R&D – A Broad Term in the Tax Administration’s Eyes
Many companies develop new products, services, or work methods without realising that they may be entitled to a tax deduction for research and development – the so-called research deduction, forskningsavdraget. Although the scheme has been in place for several years, few companies take full advantage of it. A common misconception is that it only applies to universities, research institutes, or large technology companies. This is not true.
It’s easy to assume the deduction only applies to lab-based research or high-tech inventions. But what matters isn’t what you call the project – it’s what you were trying to solve. If, in the course of your work, you faced challenges with no ready-made solution and had to test, adapt, and develop a working one, your activities may well qualify as R&D under the law.
Signs of R&D – Is This True of Your Product Development?
It could be a case of automating a manual process. You know the goal, but there’s no clear path to get there. With no existing solution available, you go through several development stages before finding one that works. Another example could be a digital tool being used in a new context, where the design and logic must be reworked multiple times. These situations share common traits: uncertainty, technical challenges, and step-by-step learning – which align closely with the definition of R&D for tax purposes.
Even if your work qualifies, proper documentation is crucial. You don’t need detailed reports – but you do need to be able to show who did what, when, and why. A simple time log or an internal email discussing a technical issue can go a long way. The biggest barrier is often not the work itself but failing to record it.
Documentation Today Can Lead to Tax Deductions Tomorrow
New legislation has been proposed to make the deduction even more accessible. A government inquiry published in early 2025 recommends removing the requirement for systematic methodology and scrapping the need for the result to be a completely new or significantly improved product. Instead, it will be enough if the aim was to improve something by developing new solutions to technical or practical problems. The requirement for specific expertise would also be removed. These changes are expected to broaden eligibility significantly, especially for smaller companies.
While the new rules are expected to take effect on January 1st, 2026, work carried out today can form the basis for future claims. That’s why it’s a good idea to start documenting your development work now – especially if there’s testing, uncertainty, or problem solving involved.
Curious if Your Work Might Qualify?
Don’t hesitate to contact Leyton Sverige AB – we’ll help you navigate the process and maximise your claim.
