Research Allowance Act (FZulG)

Promote your innovation with a research grant

In order to stimulate research activities in Germany and to strengthen Germany as an investment location, the Federal Government enacted the Act on Tax Subsidies for Research and Development (Forschungszulagengesetz – FzulG) on 1 January 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 research allowance is paid out or offset against tax irrespective of the business result. Several projects are eligible per company, up to a total of EUR 4 million in research and development costs, of which 25 % can be subsidised. You can find out more about the amount of the research allowance here.

Which companies are eligible ?

Taxable enterprises within the meaning of the Corporation Tax Act or the Income Tax Act are eligible to apply. The research allowance provides a tax refund of up to one million euros per year for all tax-paying companies, regardless of their size.

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

Which projects are eligible?

All research and development projects from 01.01.2020 are eligible, provided they belong to 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
EUR 1 million per applicant per year. This allowance is paid out as a tax credit on the next assessment or deducted from the tax due.

%

tax subsidy

applicant per year

Which costs are eligible?

  • Wage costs incl. non-wage costs for staff working on research and development projects, in each case for the proportion of their working time devoted to eligible activities.
  • Expenditure on third-party contracts in research and development projects, i.e. contract research (60% chargeable).

How do I apply for the research grant?

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Application for a research allowance certificate

The basis for the research allowance is a certificate which can be applied for at the BSFZ Research Allowance Certification Office(https://www.bescheinigung-forschungszulage.de/) – also retroactively.

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Application for the tax research allowance

The application must be submitted to the relevant tax office. The application for the allowance must be accompanied by the above mentioned certificate(s).

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 per year in EU countries and achieve a success rate of over 95% approved certificates. Our success rate is three times higher and the funding amount 45% higher than the average of all funding applications. For example, the average European success rate for Horizon2020 projects at 12% – ARTTIC has a 35% success rate in Horizon2020 with 115 projects.

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

ARTTIC/PNO success rate
EU programmes

ARTTIC/PNO success rate

EU average

  • Horizon2020 35% 35%
  • 12% 12%
  • NER300 98% 98%
  • 32% 32%
  • TEN-T CEF 75% 75%
  • 40% 40%
  • Life 55% 55%
  • 8% 8%

Average amount of grant applications WBSO in €

PNO

RVO

  • 2015 55.311% 55.311%
  • 39.077% 39.077%
  • 2016 102.515% 102.515%
  • 65.786% 65.786%
  • 2017 105.606% 105.606%
  • 68.422% 68.422%
  • 2018 99.320% 99.320%
  • 67.751% 67.751%
  • 2019 97.849% 97.849%
  • 75.879% 75.879%

Our services

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Pre-check and identification

We can help you identify eligible research projects and take the hassle out of writing the proposal. We check your R&D activities for their eligibility for funding under the FZulG and other funding programmes. We put together the best project portfolio.

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Application for research allowance certificate

We take care of all the preparation, writing and timely completion of your high quality research grant application.

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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.

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Prepare your research grant declaration

We’ll help you get the legal right to the tax credit so you can plan ahead for next year’s funding. We coordinate the correct and timely submission of the research grant declaration to the tax office.

If required, ARTTIC cooperates with a tax consultancy specialising in research allowances: Ebner Stolz Wirtschaftsprüfung und Steuerberatung, one of the largest firms in Germany.

Risk-free tariff model

We can offer you the above services on a risk-free basis, with a commitment fee, a premium on successful certification and a performance-based fee based on the IRS tax assessment of your research allowance.

 

Your contact to us

How much time can your research and development team spend on the proposal? 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 research allowance?

We will help you with your application according to § 6 of the Research Grants Act and optimise your chances.

Make an appointment for an online meeting for an introduction to the research allowance and the services of ARTTIC Innovation GmbH, provided that your company has at least 3 research and development employees.

During this non-binding online meeting, you can ask your questions about the research allowance. 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 51
info@fzulg.eu

Our services

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Development of funding applications

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Research Allowance Act (FZulG)

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Projectmanagement

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Communication and marketing

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Advice and coaching

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Event Organisation

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Training