Tax Credit Scheme

What are the objectives?

The objective of the scheme is to strengthen research and development activity and improve the competitive condition of innovation enterprises by providing them with the right to tax credits in respect of costs of innovation projects.

Who can apply?

The scheme applies to enterprises that carry out research and development projects which have been certified by the Icelandic Centre for Research. Universities and public agencies are not considered to be enterprises under this scheme.

Requirements

The requirements for approval is that the project is a research or development project according to the definitions in act 152/2009 and also:

1. that the concept of the value-adding product/service and the business plan is well defined, and
2. it is documented that the amount appropriated for research and development over a 12 - month period equals or exceeds ISK 1 million, and
3. that the staff have the training, education and experience in the area on which the concept of a value-adding product or service is based.

Further information in Icelandic - Skattfrádráttur rannsókna og þróunarverkefna.