New Finnish tax incentives spur R&D, employee engagement
Companies in Finland are able to claim a tax-based incentive for the cost of joint research and development projects and issue tax-free shares to employees to foster employee engagement.
The incentives became available under amendments introduced to the tax code in an attempt to accelerate economic recovery from the coronavirus pandemic by enabling companies to renew their operations. They are also in line with the national objective of raising research and development spending to a level equalling four per cent of gross domestic product by 2030.
“For the economy to recover and economies to return on a growth path, companies need to renew their operations during and after the pandemic,” stated Antti Aumo, the director of Invest in Finland, a division of Business Finland.
The amendments make companies regardless of domicile eligible for a tax deduction of 150 per cent for the costs of research and development projects conducted in collaboration with universities and research institutes in 2021–2025. Companies can thus effectively claim a 50-per cent deduction in addition to the usual 100-per cent deduction for such costs.
Read the whole article at Good News from Finland page.