R&D tax credit (FZulG)

Promote your innovation with a R&D tax credit law

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) on January 1, 2020. It allows a tax refund of up to 1 million euros per year for sole proprietorships, small and medium-sized enterprises or multinational corporations with research and development projects.

The R&D tax credit law is paid out or offset for tax purposes irrespective of the business result. Several projects per company are eligible for subsidies, up to a total R&D cost of four million euros, of which
25% can be subsidized. You can find out more about the amount of the R&D tax credit law here.

Which companies are eligible ?

Taxable entities as defined by the Corporate Income Tax Act or the Income Tax Act are eligible to apply. The R&D tax credit law provides a tax refund of up to one million euros per year for all tax-paying companies, regardless of their size.

  • Increase application amount through our experience!
  • Secure funding for research projects!
  • Save time when applying!

Which projects are eligible?

All research and development projects on or after Jan. 1, 2020, are eligible if they fall into one or more of the following categories:

Basic research

Industrial research

Experimental development

For all applications, formal and substantive requirements must also be met.

How much money can you get?

The tax subsidy amounts to 25% of the eligible costs with a maximum of
1 million euros per applicant per year. This allowance is paid out as a tax credit on the next assessment or deducted from the tax liability due.

%

tax subsidy

per applicant per marketing year

What costs are eligible?

  • Labor costs incl. fringe benefit costs for employees working on research and development projects, in each case for the proportion of their working time that is spent on eligible activities.
  • Expenditure on third-party contracts in research and development projects, i.e. contract research (60% chargeable).

How to apply for the R&D tax credit law?

Application for a R&D tax credit law certificate

The basis for the R&D tax credit law is a certificate that can be applied for at the BSFZ Research Allowance Certification Office – also retroactively(https://www.bescheinigung-forschungszulage.de/).

Application for the tax R&D tax credit law

The ELSTER application must be submitted to the relevant tax office. In contrast to the request for certification, the exact expenses incurred must be stated.

Why submit applications with ARTTIC/PNO?

As Europe’s leading innovation consultancy, PNO Group (ARTTIC), has more than 30 years of experience with R&D tax incentives. We prepare around 3,000 applications in EU countries every year, and achieve a success rate of over 95% positive certifications. Our success rate is three times higher and the funding amount is 29% higher on average across all grant applications (e.g., WBSO, 2019).

In the high-growth market for German research grants, we can also boast a success rate of 95% at project level. Our portfolio includes companies from all industries with a focus on process engineering/mechanical engineering, automotive, IT and construction/agriculture. We support companies of all sizes, from start-ups to internationally listed companies, with special expertise in complex integrated companies.

Years of experience with R&D tax credits and EU-funded R&D projects.

Since the introduction of the Research Grant 2020, ARTTIC has been assisting companies with the application process and has developed a demonstrably successful strategy for communicating with the BSFZ

Projects according to the classification of research branches by the BSFZ

Customers according to industry classification WZ2008

  • Physics 2% 2%
  • Environmental technology 2% 2%
  • Other agricultural sciences 2% 2%
  • Languages and literature 2% 2%
  • Civil engineering 5% 5%
  • Materials engineering 5% 5%
  • Agricultural biotechnology 5% 5%
  • Chemical engineering 7% 7%
  • Medical biotechnology 7% 7%
  • Mechanical engineering 11% 11%
  • Computer and information science 16% 16%
  • Electrical engineering, electronics, information technology 16% 16%
  • Other engineering sciences and technologies 20% 20%
  • Manufacture of glass and glass products, ceramics, processing of stones and earths 2% 2%
  • Metal production and processing 2% 2%
  • Furniture production 2% 2%
  • Production of other goods 2% 2%
  • Wholesale trade (excluding trade in motor vehicles and motorcycles) 2% 2%
  • Activities auxiliary to financial and insurance services 2% 2%
  • Architectural and engineering offices; technical, physical and chemical investigation 2% 2%
  • Provision of economic services to businesses and individuals n.e.c. 2% 2%
  • Education and teaching 2% 2%
  • Agriculture, hunting and related activities 4% 4%
  • Production of chemical products 4% 4%
  • Research and development 4% 4%
  • Building maintenance; gardening and landscaping 4% 4%
  • Production of pharmaceutical products 7% 7%
  • Production of electrical equipment 9% 9%
  • Production of data processing equipment, electronic and optical products 11% 11%
  • Manufacture of motor vehicles and parts of motor vehicles 11% 11%
  • Provision of information technology services 11% 11%
  • Mechanical engineering 13% 13%

Our services

Free preliminary check of your projects

We can help you identify eligible research projects. We check your R&D activities for their eligibility under the FZulG and other funding programs. We put together the best project portfolio.

Application for R&D tax credit law certificate

We take all the preparation, writing, and timely completion of your high-quality research grant application off your hands. We will respond to subsequent requests from the BSFZ in a timely manner.

Establishment of an efficient and legally compliant administration

We provide information on administrative requirements and train your staff to meet them and manage them correctly.

Prepare your R&D tax credit law declaration

We’ll help you become legally eligible for the tax credit so you can plan ahead for next year’s funding. We coordinate the correct and timely submission of the R&D tax credit law declaration to the tax office.

If required, ARTTIC cooperates with a tax consultancy specialized in R&D tax credit law: Ebner Stolz Wirtschaftsprüfung und Steuerberatung, one of the largest firms in Germany.

Risk-free tariff model

We can offer you the aforementioned services on a risk-free basis, with a commitment fee, a premium upon successful attestation, and performance-based compensation based on the IRS tax assessment of your R&D tax credit law.

 

Your contact to us

How much time can your research and development team spend on the application? Can you tell if your project is eligible under Frascati rules? Do you know if you have identified all the expenses that fall under the R&D tax credit law?

We help you with the application according to § 6 of the R&D tax credit and optimize your chances.

Make an appointment for an online meeting for an introduction to the R&D tax credit law and the service of ARTTIC Innovation GmbH, provided that your company has at least 3 research and development employees.

During this no-obligation online meeting, you can ask your questions about the R&D tax credit law. Click the button and schedule your video call appointment. You will receive a confirmation of your request.

ARTTIC Innovation GmbH

Oskar-von-Miller-Ring 29
80333 Munich

+49 (0) 89 248 83 03 0
info@arttic-innovation.de

Our services

Development of funding applications

Research Allowance Act (FZulG)

Projectmanagement

Communication and marketing

Advice and coaching

Event Organisation

Training