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Under the SkatteFUNN scheme, business enterprises engaged in research and development activity on their own or in collaboration with others may apply for a tax deduction. The scheme is qualification-based and regulated in the statutory framework, and is open to all branches of industry and all types of companies - regardless of size. To be eligible for a tax deduction, business enterprises must be subject to taxation in Norway, although they do not have to be currently liable for taxation.
The primary objective of the SkatteFUNN scheme is:
All business enterprises subject to taxation in Norway.
APPLICANTS MAY APPLY FOR APPROVAL FOR A PERIOD OF MAXIMUM 3 YEARS.
The SkatteFUNN scheme is an indirect funding scheme. Support takes the form of a tax deduction up to 20% of the costs related to R&D activity. Expenses must be documented and recorded in the project accounts. The tax deduction is awarded on top of the ordinary deductions.
Tax deduction under the SkatteFUNN scheme are based on the following annual budgetary parameters per project per company:
* NOK 4 million R&D conducted by the company itself (internally or in collaboration with others). 20 % deduction = maximum NOK 800,000 for SMEs and 18 % for larger companies.
* With a budget framework of over NOK 4 million (and maximum NOK 8 million), all expenses between NOK 4-8 million must be related to the procurement of R&D services from an approved R&D institution. Up to 20 % deduction = maximum NOK 1,6 million for SMEs and 18 % for larger companies.
Only projects that have been approved by the Research Council (the SkatteFUNN scheme) are eligible for tax deductions. The deduction itself (which may be considered project funding) is taken at the time of the annual tax assessment, and is based on the deductions itemised by the company and verified by an auditor on the RF 1053B tax form.
For further information see the website www.skattefunn.no .