Research & Development Tax Deduction

To support research and development – R&D – within Swedish industry, companies have the opportunity to reduce their payroll costs by claiming deductions on employer social security contributions for employees working in research or development. The purpose of the deduction is to create incentives for companies to increase their investments in R&D, as well as to attract and retain international key talent. The deduction may be claimed by both Swedish and foreign companies that pay employer social security contributions in Sweden.

About R&D tax deduction

To qualify for the special deduction when calculating employer social security contributions, the work must clearly constitute research or development. For activities to be classified as such, requirements include, among other things, a systematic approach, a commercial purpose, and a certain minimum share of working time devoted to the activities. The Swedish Tax Agency places high demands on both supporting materials and documentation, and for technically advanced operations it is particularly important to be able to describe complex development processes in a clear and understandable way.

Insufficient or unclear documentation may result in potential deductions being lost or incorrectly applied. This places companies under a significant administrative burden and creates uncertainty as to which costs are actually deductible in practice, leading many businesses to not fully utilize the deduction opportunities that are in fact available.

Our R&D advisory services

We provide professional advisory services to assess whether your activities qualify for the research and development deduction and thereby entitle you to reduced employer social security contributions. In addition, we help you establish an efficient structure for ongoing documentation, ensuring that the deduction is fully utilized.

As part of our work, we compile all relevant documentation and prepare a comprehensive analysis of your operations, demonstrating how they meet statutory requirements and how the deduction has been calculated. This serves as strong supporting evidence for the Swedish Tax Agency.

If it can be demonstrated that the activities qualify for the deduction retroactively, this may form the basis for a reassessment and refund of previously paid social security contributions. In such cases, we also assist in managing the reassessment process with the Swedish Tax Agency.

Legal proceedings

The Swedish Tax Agency may also question research and development deductions that have already been claimed, which, if not properly addressed, could expose the company to repayment obligations. In such cases, we assist in compiling all relevant documentation and submitting detailed responses and additional information to the authority.

If necessary, we also represent your business in court to ensure that your rights are fully protected and that your case is handled in the most effective manner. With extensive experience in these matters, CauseyWestling provides support throughout the entire process, guiding you from initial inquiries to final resolution.