16.10.2013

Finnish technology companies to increase R&D spending

Foreign-owned companies operating in Finland are also eligible for tax relief based on R&D salary costs.

About half of Finnish technology intensive companies are planning to increase their R&D spending in 2014, according to a survey of 100 CTOs conducted by Spinverse, Sitra and Tekniikan Akateemiset. Companies that are increasing their R&D spending include ABB, Kone and Wärtsilä.

In Finland, companies spend a total of about EUR 4 billion on R&D annually. Under a new law that came into effect in January 2013, foreign-owned companies operating in Finland are also eligible for tax relief based on the cost of hiring personnel engaged in new R&D activities.

Tax relief for R&D salaries

According to the law, 100% of the amount paid in direct salaries for personnel in a new R&D project related to the company’s own business can be deducted from the gross profits. The minimum amount for the tax relief is EUR 15,000 and the maximum amount is EUR 400,000.

The tax relief is available for projects that have been started since 1 January 2013 and includes basic research, industrial research and experimental development.

Sources: Tekniikka&Talous, Ministry of Employment and the Economy