R&D Incentives in Denmark:
Enhance your company’s performance with R&D Incentives

What are R&D Incentives?

In 2018, Denmark introduced an R&D tax deduction, escalating from a 100% deduction to a 130% super deduction for 2020-2022, and a 108% deduction for 2023-2025. Companies have the option to deduct the full amount or spread it equally over the next five years. This initiative aims to bolster R&D growth, stimulate investment in R&D, and enhance economic development, allowing companies to benefit from the scheme regardless of the project type, showcasing the government’s commitment to fostering innovation.

Denmark has now 2 different tax incentives for R&D :

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R&D tax deduction, established in 2018
The Danish R&D tax deduction scheme, initiated in 2018, offers varying deduction rates for R&D expenses over the years: 101.5% for 2018-19, increasing to 130% for 2020-2022, then adjusting to 108% for 2023-2025, and settling at 110% from 2026 onwards. Expenditure caps are set at DKK 845 million for 2018-20 and DKK 910 million from 2021 onwards, aiming to encourage R&D investment and stimulate economic growth.
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R&D tax credit, established in 2012
The Danish R&D tax credit, established in 2012, offers a 22% credit on R&D expenditure deficits, up to a maximum of DKK 25 million, encouraging companies to invest in research and development activities by providing financial relief on expenses exceeding budgeted R&D costs.

Do You Qualify?

Eligible R&D expenditures for Danish tax deductions and credits focus on specific R&D activities aimed at acquiring new scientific or technical knowledge. This aligns with the OECD Frascati Manual’s broad definition of R&D, encompassing fundamental and applied research, development, and feasibility studies.

R&D incentive scenario in the IT sector

The company is developing an innovative language powered by artificial intelligence to improve the interaction between hardware and software.

Wages 5 200 300 DKK
R&D expenses 2 240 000 DKK
Total R&D expenses 7 440 300 DKK

Total deduction for 2022:

2 232 090 DKK Schedule a free consultation arrow_outward arrow_outward

Our Added Value

As Europe’s leader in R&D incentives, Leyton offers comprehensive support, identifying eligible projects and preparing detailed documentation for the entire process, including:

Scoping
Document preparation
Submission
control procedures

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Leyton in figures

At Leyton we leverage innovation funding expertise to offer comprehensive tax relief claim services, managing projects from start to finish. With experienced tax professionals, we assist businesses in navigating the R&D tax and SSC relief scheme, preparing the necessary technical reports for claim submission.

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R&D Incentives in Denmark:Enhance your company’s performance with R&D Incentives