Swedish Business Favors Deduction Proposal for R&D Incentive

A proposed cost deduction-based tax incentive for research and development would boost Sweden’s international competitiveness and is preferable to an alternative refundable tax credit, business representatives told the government.

An incentive that would provide additional cost deductions on wages, rather than directly refunding the costs, offers a larger tax relief, is simpler to implement, and would compete with other countries’ tax incentives to attract new business to Sweden, a collection of industry bodies said as part of a consultation.

Sweden’s Ministry of Finance launched the consultation in March asking for feedback on two R&D income tax incentives: an increased ...