Economics

More than NOK 23 million in cost reduction

A well-structured SkatteFUNN project can create significant financial effect when the project has real R&D costs beyond ordinary operations.

With a strong application, and adjusted for tax effects, a company can often recover a large share of the project’s additional costs. This requires correct project scope, documented costs and systematic follow-up.

Typical effects

External costs, hired consultants and travel costs can create significant financial effect.
Payroll costs in R&D projects can provide substantial relative support when hours and activities are documented correctly.
Use of own production equipment and capitalised costs may be included when the conditions are met.

Success factors

To succeed, the project should have a certain scale and include development or improvement beyond the normal level in the industry. Management should be actively involved to ensure participation from key personnel and keep the project practically executable.

Best Management works across finance, technology and management, and can often help align project content, documentation and economics.

Practical advice

Assess early how costs and hours should be documented.
Structure the project so milestones, tests and results can be traced.
Ensure management follows the project and anchors the work with key personnel.
Assess economics, tax position and cash flow before starting the project.