The RSK keeps a record of the approved projects and makes a list of these projects accessible to everyone. Collaborative projects shall be accounted for separately and all participants will be informed. If the project is confirmed, Rannís notifies the applicant of the result, in addition to notifying the office of the Iceland Revenue and Customs (RSK.is) of the companies that are involved in the projects that have received Rannís confirmation. Each project must be applied for separately. For an application to be considered valid, all necessary and requested information must be available. Rannís shall, within two months of receipt of a valid application, decide on its processing and notify the applicant of the result. The role of Rannís - Processing of applications New applications must be submitted by 1st October each year, and if a project is ongoing between years the company must apply for continuation of approved status 1st April following initial approval. In the case of co-operation project (shared ownership) application must include Co-operation agreement between the partners. References to related EU/EEA regulations in English:Īpplications are submitted for projects in Rannís' application system. Research and development ( legal definition): A specific and purposeful project that is intended to acquire new knowledge or new skills considered to be beneficial to the company due to the development of a new or better product, service or production method (Short version, see also more detailed definition).

The employees have training, education or experience in the field on which the idea of a value-added product or service is based.įurther information on confirmation conditions and regulations:.

At least 1 million ISK is dedicated to research and development over a period of 12 months.The idea of a value-added product / service and business plan is well defined.What is funded?Ī condition for a project to be approved (and thereby be able to take advantage of a tax deduction) is that it meets the legal definitionof a research or development project and: The aim is to strengthen research and development work and improve the competitive conditions of innovative companies by giving them the right to a tax deduction for the cost of innovative projects.

Deadline for continuing applications is 1st April each year. Application for continuation: Projects that have already received a confirmation from Rannís must submit an application for continuation in the spring.Application deadline for new projects: October 1st every year.If the income tax levied is lower than the determined deduction, or the legal entity does not pay income tax, the deduction is paid out. ObjectivesĬompanies that have received Rannís confirmation of research or development projects are entitled to a deduction from income tax according to Art. Universities and institutions are not considered companies within the meaning of this program. Companies that own research or development projects.

Art of deduction meaning