R&D RELATED INCENTIVES
Special tax regime for foreign key personnel
A special taxation scheme applies for researchers and key employees (specialists and top management) who are recruited abroad and are employed by both Danish adn international companies or research institution. The scheme implies that highly paid employees and researchers recruited abroad may choose between two different tax schemes, if the right conditions apply. For a period of maximum 3 years the employee will be taxed at the rate of 25 % of their remuneration with no allowances – instead of paying normal income tax. Or choose a period of maximum 5 years at the rate of 33% of their remuneration with no allowances.
Industrial PhD Programme
Companies located in Denmark can obtain a grant to employ a PhD. The company must be professionally and economically capable of supporting a three-year focused research and development project. The university can be non-Danish but it must have an official approval to educate PhDs. The grant from the Danish government amounts to 50 % of the salary of the employee (but no higher than EUR 60,400 over a three-year period).
Deduction of R&D expenses
R&D expenses are normally fully tax deductible. The company can choose to either deduct the full amount the year the expenses has been held alternatively amortization may be apportioned in equal installments over a period of the year the expenses has been held and the four following years.
Eureka
Danish companies participating in Eureka-projects can apply for venture capital at Vækstfonden. Eureka-projects are cross-border collaborations between companies in EU countries or other Eureka countries, including Iceland, Norway, Russia and Turkey.
Eureka-projects must be aimed at developing high-tech products; processes, systems or services and involve companies from at least two different EU or Eureka participating countries. The loans are provided with regards to Vækstfonden’s general conditions and the Eureka-status is not a guaranty for attaining a loan.
Support from EU
The European Union’s Seventh Framework Programme (FP7) for Research and Technological Development funds collaborative research, technological development and demonstration activities designed to improve the competitiveness of European industry. The overall goal of FP7 is to contribute to making EU the world’s leading research area, and the program is designed to respond to the competitiveness and employment needs of the EU.
Support for innovation in the food sector
The Danish Innovation Law offers possibilities for granting financial support to the development of ideas, research and product development in the fisheries and agricultural sectors, and for the processing and refinement of agricultural and fishery products.