FAQ

We advise companies of all sizes and from all sectors that invest in research and development.
To make the process worthwhile for both sides, we recommend a minimum volume of €35,000 in R&D expenditure.

To submit an application, we first conduct a technical interview with a specialist involved in the project. At the same time, we need financial data that can be easily transmitted digitally.

The total effort for your company is around 3-5 hours, spread over several employees.
Once we have received all the information, we will prepare the application within approximately one week. We then check it together with you and submit it.

Processing by the responsible office usually takes 6 to 12 weeks.

We work on a purely success-based basis, which means that costs are only incurred if approval is granted.

As a rule, our fee is 7% of the assessment basis. We are happy to prepare individual offers, for example for particularly innovative projects, small teams or high project volumes.

All taxpayers who generate income from agriculture and forestry, business operations or self-employment in Germany are entitled to apply. It does not depend on the legal form, sector, size or profit situation. Both unlimited and limited taxpayers are eligible, provided their income generated in Germany is subject to taxation. Foreign group companies can also receive the allowance if they have a permanent establishment in Germany and carry out eligible research and development activities there. Tax-exempt corporations, however, are excluded.

The Growth Opportunities Act of March 27, 2024 raised the upper limit of allowable expenses from € 4 million to € 10 million per financial year. An allowance of 25% is generally granted on this assessment basis. Companies that meet the EU definition of a small or medium-sized enterprise (SME) can apply for a supplement of ten percentage points; the subsidy rate for them is therefore 35%. This results in maximum amounts of €2.5 million (non-SMEs) or €3.5 million (SMEs) per year and company group.

• Gross employee wages & ancillary employer costs for R&D personnel (100% eligible).
• Contract research: 70% of the remuneration paid to the external contractor (until March 2024: 60%).
• Material costs / depreciation: pro rata depreciation on depreciable, movable fixed assets, insofar as they are used on a project-related basis (new since 2024).
• Personal contributions by sole proprietors or co-entrepreneurs: flat rate of €70 per proven hour of work (previously: €40).
  Routine activities with no R&D character or purely administrative overheads are not recognized.

The process is organized in two stages and is completely digital:

R&D certificate (BSFZ):

• Submission of a technical project description via the online portal of the Certification Office for Research Grants (BSFZ) using the company ELSTER certificate.
• Test duration usually 6 - 12 weeks; written queries if required.

Determination of the research allowance (tax office):

• After positive certification, submit the ELSTER form "Application for determination of the research allowance" to the responsible tax office.
• The applicant must personally sign the electronic ELSTER transmission; service providers may only prepare and follow up (obligation to accompany).
• The tax office's decision determines the allowance and allocates it to the tax assessment.

An assessment period of four years applies for each project and expense period (Section 169 (2) no. 2 AO in conjunction with Section 10 FZulG). The period begins at the end of the financial year in which the corresponding R&D expenses were incurred. Example: Expenses incurred in 2021 can be certified until December 31, 2025 and then claimed from the tax office. The decisive factor is that the BSFZ application is received on time; the subsequent tax assessment may also take place after this date.

Once the assessment notice has been issued, the allowance generally acts as a tax credit: it is initially offset against income or corporation tax. If the allowance amount exceeds the tax liability or there is no tax liability, it is paid out directly. Since January 1, 2025, the tax office has been able to offset the allowance against current income/corporate tax prepayments upon application (Section 10 (2a) FZulG). This means that the liquidity effect - depending on the processing times of the BSFZ and the tax office - can often occur just a few weeks after submission.