A financial lever to support research and development (R&D) in your company.​

The research tax allowance (FZul) aims to support the R&D activities of German companies and to expand the funding landscape in Germany, especially for SMEs.​

Who is funded?

Taxable companies based in Germany, regardless of their size and legal form.​

What is funded?

Projects in basic research, industrial research and experimental development (as defined by the FZulG) are eligible for funding. The projects can be operated in-house or in cooperation, but can also be commissioned.​

How much is funded?​

Since its introduction, the FZulG has played a significant role in the promotion of R&D in Germany. The increase in the maximal annual tax assessment base for eligible expenditure from 4 to 10 million euros through the Growth Opportunities Act is one of the most significant changes that offers companies more financial opportunities.

For companies that started their projects after 1 July 2020, the following caps on eligible expenditure apply:

  • SMEs: Up to 3.5 million euros per year
  • Large companies: Maximum of 2.5 million euros per year

The amount of eligible expenditure is:

  • 25% for large companies,
  • 35% for SMEs
  • 17.5% for contract research.

The basis for calculation is staff expenditure for research employees and future-proofing services as well as 70% of the remuneration for contracted research.

What kind of projects can be funded?

  • R&D projects by manufacturing companies
  • R&D projects by companies developing new products
  • New developments in mechanical engineering, electronics, automotive biotechnology, sensor technology, etc.
  • Research for new solutions in artificial intelligence, blockchain robotics, augmented reality/virtual reality
  • Research for new technologies, materials and processes for the aerospace, marine, rail and automotive industries
  • Research in civil defense technologies, cybercrime prevention and new military technologies
  • Research in the field of new agricultural machinery technology, agricultural processes, forestry processing

An application in two steps:​

Companies must first apply for a certificate for each R&D project from the relevant certification body. In particular, the body certifies the projects’ eligibility.​

The application for the FZul can be submitted once the certificate has been received and the tax year has been completed. Before the research allowance is paid (tax deduction and – under certain conditions – payment), the applicant company receives a research allowance notification.​

We will guide you through the complex application process, paying attention to precise and success-oriented formulations in order to maximise your chances of receiving a positive funding decision.

Why is FI Group the right partner for you?

Our approach is based on in-depth knowledge of your company, a strategic approach with our holistic “FI synergy” methodology and our expertise from over 20 years of experience and 18,000 satisfied customers. There is no risk for you because our remuneration is success-based. We do the work of the application process and monitoring for you, giving you more space to focus on the your ideas.

This is how we generate tangible added value for you:

  • Comprehensive analysis: we thoroughly analyse the status quo of your data and projects to create a solid basis for all further steps.
  • Technological expertise and precise questions: We identify relevant projects and increase their eligibility for funding through targeted questions and technological expertise.
  • Optimised application: With clear, precise application formulations and engineering expertise, we minimise the risk of rejections and additional claims.
  • Efficient process routine: We establish routines for future projects to streamline your processes and maximise eligibility.
  • Employee training: We train your team in time tracking and increase their awareness of the research allowance. Optimised documentation and a trained view of future projects ensure the best possible funding.

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