The Finnish Government has passed a new R&D tax incentives law, complementary to the one that was implemented in 2021. These new R&D schemes allow company to have up to 1 500 000 euros deduction.
The 1st January 2023 a new law was implemented to create a R&D tax relief for all Finnish companies -. that have their own R&D projects
This new law is complementary and in the line with the previous incentive, created in January 2021, that allows Finnish companies to deduct 50% on R&D subcontracting costs (this deduction was increased to 150% for the cost incurred between 2022 and 2027).
The purpose of the new R&D incentive is to strengthen Finland position as one of the European leader regarding R&D and the target 4% GDP on R&D by 2030.
The aim of this new law is to promote R&D activities by granting research and development incentives to companies conducting their own R&D projects.
The R&D incentives is constituted of two :
- 50% deduction of the total amount of research and development wages and purchased research and development services.
- 45% of the increment than previous year in research and development wages and the total amount of purchased research and development services.
These two new incentives can grant up to 1 000 000 euros deductions for companies.
To be eligible for these new incentives you need to fulfill some criteria, regarding your projects and employees and to substantiate your claim. The definition of what constitutes R&D is in line with the OECD Frascati Manual. It includes fundamental research, applied research, development work and feasibility studies. The prework of the law mentioned that the assessment of what constitute R&D must be interpreted with broadly.
As the European leader regarding the R&D incentives, Leyton identifies eligible R&D projects, prepares exhaustive supporting documentation throughout the end-to-end process: scoping, document preparation, submission and controls.
USP and mission: Export LEYTON’s know-how and group-wide gathered expertise of identifying R&D and claiming the incentive for companies, in order to actively help them to grow and stay focus on their core business.
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