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:

  1. Scoping
  2. Document preparation
  3. Submission
  4. control procedures

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    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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