4.5 billion in tax deductions for research and development

In total, Norwegian companies received a tax credit of NOK 4.5 billion to invest in research and development last year, according to figures from the Research Council.

Together, the Research Council approved more than 3,300 applications for deductions through the so-called tax discovery scheme.

“The scheme has increased sharply since 2013. We now see that there is a slight reduction from 2017, but there are still many companies that use this scheme,” says CEO John-Arne Røttingen in the Research Council in a press release issued by the government.

In 2018, the Research Council received 4,569 applications, compared to 4,739 the previous year. The government is very pleased with the scheme.

– Tax findings contribute to higher value creation through knowledge, research and innovation. Innovative companies help to equip us for a future where the Norwegian economy needs more bones to stand on, says Finance Minister Siv Jensen (FRP).

The scheme was established in 2002, and states that companies can deduct 20 percent of the cost of approved projects from the tax. Companies with deficits receive the money directly paid out.

Last spring, spot checks taken by the Tax Administration showed that more than half of the companies that applied for a deduction through the scheme had pumped up the application. The year before, inspections in collaboration with the Research Council of Norway led to 83 companies in the Skattefunn scheme receiving claims from the tax authorities of NOK 60 million.

(© NTB)

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