Since January 2, 2020, all taxable companies in Germany, regardless of size, type or industry, including start-ups, have been legally entitled to a grant under the Research Allowance Act (FzulG), provided they invest in their own research and development and do not claim any other funding for this. The reimbursement means that companies in loss-making phases can also benefit from the funding. The research allowance offers companies an additional, easily accessible funding instrument to create further incentives for innovation.

Compared to traditional project funding, tax incentives for research require a lower level of innovation. Many development projects that do not meet the high requirements of project funding are nevertheless eligible for funding through tax-incentivized research funding.

The Growth Opportunities Act passed at the end of March will significantly improve the framework conditions for the research tax allowance from 2024.

The most important improvements and new features at a glance:

• The maximum assessment basis will increase to ten million euros per year and will therefore be tripled.
• For SMEs, the subsidy rate for personnel costs incurred increases from 25% to 35%.
• 17.5% of the costs for contract research by third parties can be subsidized.
• In future, sole traders and co-entrepreneurs will be able to claim a flat rate of EUR 70 per working hour for their own work.
• New: Pro rata reductions in the value of depreciable movable assets are taken into account.
• New: A reduction of the advance tax payments by the amount of the research allowance is possible upon application

Our support:

• Free initial consultation
• Innovation check with regard to eligibility for funding
• Advice and application

Our experts are at your side every step of the way.

We offer comprehensive support from the initial consultation to the assessment of innovation capability and the application process. This allows you to concentrate on your core business

while we take care of the FZulG issues.