In order to stimulate research activities in Germany and to strengthen Germany as an investment location, the German government enacted the Act on Tax Subsidies for Research and Development (R&D tax credit – FZulG).
Theoretical or experimental work undertaken primarily to acquire new knowledge, without any particular application or use in view.
Targeted research activities aimed at developing new products, processes, or services, which are not yet ready for the market.
Activities intended to develop new or improved products, processes, or services. These development projects are often closer to market introduction.
Software projects can also be eligible for funding if they have a clear R&D character, such as the development of new algorithms, technologies, or platforms.
Developments in areas such as artificial intelligence, biotechnology, robotics, or new materials that lead to market-ready products or services.
Projects focused on the development of new technologies in the field of renewable energy or energy-efficient solutions.
Research projects aimed at advancements in medicine, pharmacology, or biotechnology.
The projects must be innovative, meaning they must go beyond the current state of the art or science and must not represent a minor improvement of existing products or processes.
The funding rate (multiplier on eligible costs) is used to calculate the amount of funding. Small and medium-sized enterprises (SMEs), i.e. companies with fewer than 250 employees and €50 million in turnover or €43 million in total assets, benefit from a 10% bonus (absolute) on the standard funding rate of 25%.
Only staff employed by the company itself are subject to tax deduction and are eligible for funding. The employer's gross wages for the entire project duration are included in the assessment amount at 100%. Temporary workers do not count as company staff (but may be billed as contract research if applicable).
Contract research accounts for 70% of the assessment total (please enter the full amount; calculation is performed automatically). This includes R&D contracts from research institutions or other companies (affiliated or non-affiliated companies in the EEA). Only net items (excluding VAT) are eligible for billing.
Movable fixed assets (e.g. machinery, prototypes, laboratory or technical equipment, IT, vehicles, etc.) that are used exclusively for research and development during the project period are eligible for funding (i.e. no consumables, intangible assets or real estate). Only the amount of the annual depreciation over the project period is included in the assessment total at 100% (see AfA).
Eligible costs are the sum of the costs defined in the FZulG to which the subsidy rate applies. From 2026 onwards, €12 million per corporate group can be claimed annually (a single company can claim the entire amount within the group). A flat-rate overheads allowance of 20% is calculated on direct costs (personnel, contract research, fixed assets).
R&D tax credits are the amount of funding calculated by multiplying eligible costs by the funding rate (25%, or 35% for SMEs), which is deducted from corporation tax after approval by the tax office.
Make an appointment for an online meeting for an introduction to the R&D tax credit and the services of PNO Innovation.
During this no-obligation online meeting, you can ask your questions about the R&D tax credit. Click the button and schedule your video call appointment. You will receive a confirmation of your request.
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We support your company with R&D tax credits by checking projects for eligibility and handling the application process. We also help you with detailed and legally compliant documentation. This helps your company to apply for and access research allowances efficiently and risk-free.
Content review based on the FRASCATI criteria with a focus on novelty, differentiation from the state of the art and knowledge, as well as challenging implementation.
We prepare applications for you in accordance with Section 6 of the German R&D Tax Credit Act (FZulG) and respond to additional claims from the BSFZ so that you can obtain a legal entitlement to the research allowance. We show you how to use the web portal and take on the responsibility that you are willing to relinquish.
We provide you with all the templates you need to efficiently claim FZul under Section 5 of the FZulG and advise you on all the pitfalls in the process. Existing documentation is checked for audit compliance. Large conglomerates benefit from our coordinated approach.
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