Future slowed down by old rules - now tax reform for startups is needed
Sweden has one of the world's most research-intensive innovation ecosystems - but many startups are excluded from the tax tools that are meant to support them. In two recent submissions from SISP and FUHS, the stakeholders behind Sweden Startup Nation show how regulations can be modernized to meet the realities of today's innovation environments.
One of the objectives of Sweden Startup Nation is to become a new specific referral body for issues that have an impact on the conditions for Swedish startups and scaleups and to continue to collaborate with the actors and industry organizations that work with these issues.
Earlier in May, Swedish Incubators & Science Parks (SISP) and Föreningen Universitetsholdingbolag i Sverige (FUHS) each submitted a consultation response to SOU 2025:3 - Tax incentives for research and development. Both point to the same problem: that today's rules are too complicated, miscalibrated - and in practice exclude the very companies that Sweden says it wants to support.
Startup filter - for a fairer regulatory framework
A key proposal from both SISP and FUHS is to introduce a start-up filter or SME and start-up filter. This involves an interpretative perspective where regulations such as R&D deductions and expert tax are adapted to the reality of small, research-intensive companies - rather than being based on large companies or academic structures.
"Start-ups work iteratively, often without formal project structures or traditional documentation. So legislation and enforcement must reflect that."
Both organizations suggest that startup filters should be included:
Possibility of alternative documentation, such as code, test data, prototype logs or certificates from innovation support actors.
Adapted burden of proof and interpretation depending on the age, size and nature of the company.
A holistic perspective in regulatory assessments where innovation intent and commercialization potential weigh heavily.
FUHS places particular emphasis on the fact that the filter perspective should be combined with a simplified, digital fast track for startups when applying for both R&D deductions and expert tax.
The expert tax is wrong - and misses out on cutting-edge expertise
Both responses identify the expert tax salary requirement as a key barrier for startups to recruit key international skills. The FUHS suggests that thresholds should be adapted to the logic of the employee stock option scheme, which means that the assessment should be based more on strategic roles, co-ownership and long-term incentives than on monthly salary.
"Many research founders don't take a salary - but build companies that carry our entire future industry."
Other common proposals are:
Remove the requirement that the expert must not have lived in Sweden for the last five or ten years.
Broadening the target group to include postdocs, visiting researchers and engineers.
Introducing a dedicated fast track for start-ups, with simpler applications and clearer criteria.
A different approach to predictability
Both SISP and FUHS oppose the committee's decision to refrain from introducing advance rulings in the R&D deduction. Instead, both suggest that advance rulings - or at least non-binding advice - should be offered specifically to smaller companies, in order to lower the thresholds and avoid misinterpretations.
FUHS adds that innovation offices at higher education institutions should be able to act as expert advisors to the Swedish Tax Agency, to contribute expertise in the assessment of what constitutes R&D in startups.
A concrete example of SSN systemic impact
This collaboration between the actors will be further accelerated through the system-changing work that Sweden Startup Nation brings together and strengthens based on its work for the country's entrepreneurs. By formulating common needs, concretizing obstacles and proposing solutions, we contribute to the companies of the future having an innovation ecosystem that actually works.
"We know what adjustments are needed - now we need legislation that reflects the reality of startups."
Want to read the full consultation responses? Contact katarina.bennich@sisp.se.
