SkatteFUNN

SkatteFUNN is a tax incentive scheme administered by the Research Council of Norway (Norges Forskningsråd, in short RCN or NFR) in collaboration with the Norwegian Tax Administration (Skatteetaten), with the goal of promoting and incentivising R&D activities in Norwegian companies. Through SkatteFUNN, companies can receive 19% of the total cost of a project as a tax credit through the tax settlement. Applicants must be incorporated in Norway and liable to pay corporate tax in Norway. If the applying company does not generate a taxable income, the credit is paid out in cash.

SkatteFUNN funds projects within all subject areas, but the project must be targeted and limited to a dedicated R&D project on the development of a new or improved product, service, or production process. The project must generate new knowledge, skills, and capabilities.

Requirements

• The formal applicant must be a company that has been issued an enterprise number under the Norwegian Register of Business Enterprises and that carries out economic activity in Norway, as well as being taxable in Norway.
• The applicant must develop new or improved products, services, or production processes.
• This will be achieved through a targeted and limited project, and clearly separable from the applicant’s daily activities.
• The project will result in the creation of new knowledge or new skills.
• The result of the project will benefit the applicant.

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