Sweden Proposes Changes in Monthly R&D Deduction Cap for Employees

The Swedish Ministry of Finance has announced the submission of certain proposals for potential inclusion in the 2027 Autumn Budget. One of the main proposals is a change in the monthly cap for the R&D deduction provided in respect of employees engaged in R&D activity. The R&D deduction allows employers to reduce the employer contribution and general payroll tax basis for employees engaged in R&D by 20%, subject to a total deduction cap for all employees equal to SEK 3 millio…