Sweden Proposes New Enhanced R&D Wage Cost Tax Deduction

The Swedish Government has published a Legislative Council referral proposing the introduction of a new enhanced cost deduction for research and development (R&D) for income tax purposes. The proposed incentive is intended to strengthen Sweden's competitiveness and increase private R&D investment.

Under the proposal, businesses would be entitled to voluntarily claim an enhanced deduction equal to 200% of qualifying wage costs for employees engaged in qualifying R&D activities. …