Norway: Research gives tax advantages for small enterprises

New numbers from Norwegian Skattefunn show that more than half of the enterprises that receive tax deductions through research investments have less than ten employees. 1,6 billion NOK were given as tax deductions last year.
The scheme of tax deduction of R&D expenses, Skattefunn, also shows that the industry of the rural districts are most active in sharing the benefits. Particularly the enterprises of region Sør-Trøndelag and the other coastal regions from Agder in the south to Troms in the north are active in applying for deductions:
"It seems that Skattefunn hits a very important group of enterprises and that the scheme has made it easier for smaller enterprises to invest in R&D," says Minister of Trade and Industry Odd Eriksen.

1,25 percent of all Norwegian enterprises have had tax deductions for research projects in 2005.

"If the industry wants to compete on an international arena they have to invest in continuous research and development, and Skattefunn contributes to this," Eriksen says.

Skattefunn is administered by the Research Council of Norway and Innovation Norway. A tax deduction of up to 20 percent is given for the total project costs in the projects that Skattefunn approves.

Go to Skattefunn.

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