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 time required for your company is about 3–5 hours, spread across several employees.
Once we have received all the information, we will prepare the application within about a week. We will then review it with you.

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 general rule, our fee is 15% of the grant amount. We are happy to provide customized quotes, for example, for particularly innovative projects or large-scale projects.

Germany (Research Allowance under the FZulG)

All taxpayers who earn income from business operations or self-employment in Germany are eligible to apply. Legal form, industry, size, or profit situation are irrelevant; the sole determining factor is the implementation of an eligible R&D project. Both taxpayers with unlimited and limited tax liability are eligible, provided that the income earned in Germany is subject to taxation here. Foreign group companies may also receive the allowance if they have a permanent establishment in Germany and conduct eligible research and development activities there. Tax-exempt entities, however, are excluded.

Austria (Research Bonus under Section 108c of the Income Tax Act)

Eligible recipients include natural persons subject to unlimited or limited tax liability, partnerships, and corporations, provided they are not exempt from corporate income tax. Here, too, legal form, industry, size, and profitability are irrelevant: Since the incentive is credited to the tax account, even companies operating at a loss benefit from it. The prerequisite is that the research and experimental development be conducted at a domestic business or a domestic permanent establishment. This means the incentive is also available to foreign group companies with a permanent establishment in Austria. In the case of partnerships, the partnership claims the incentive, not the individual partner. Public-law corporations themselves are not eligible, but their commercial operations are.

Germany (Research Allowance under the FZulG)

The Growth Opportunities Act of March 27, 2024, initially raised the cap on eligible expenses from €4 million to €10 million per fiscal year. For expenses incurred on or after January 1, 2026, the maximum tax base is €12 million per fiscal year and corporate group, with this increase applying to all companies, not just SMEs. A 25% allowance is generally granted on this tax base. Companies that meet the EU definition of a small or medium-sized enterprise (SME) may apply for a ten-percentage-point bonus; for them, the funding rate is thus 35%. This results in maximum amounts of €3.0 million (non-SMEs) and €4.2 million (SMEs), respectively, per year and per group of companies starting in 2026. In addition, a flat-rate overhead surcharge of 20% is applied to eligible costs without the need for separate documentation. The increased assessment basis of €12 million is limited to the period from 2026 to 2030.

Austria (Research Bonus under Section 108c of the Income Tax Act)

The research tax credit is a flat rate of 14% of eligible research expenses, regardless of the company’s size. For in-house research, there is no cap on the amount of the tax credit: There is no annual maximum, which particularly benefits research-intensive large companies. An upper limit applies only in two specific areas. For contract research, the expenses invoiced by the contractor (excluding value-added tax) are eligible up to a maximum of one million euros per full fiscal year, resulting in a maximum bonus of €140,000 under this category. For the notional entrepreneur’s salary applicable to entrepreneurs working in research and development without compensation, the following applies: For fiscal years beginning after December 31, 2023, the rate is €50 per hour, with an annual maximum of €86,000 per person, which corresponds to 1,720 eligible hours.

Germany (Research Allowance under the FZulG)

• Gross wages paid to employees and employer-paid ancillary costs for R&D personnel (100% tax-deductible).
• Contract research: 70% of the remuneration paid to the external contractor (until March 2024: 60%). The contractor must be based in the EU or the EEA.
• Operating expenses and depreciation: pro-rata depreciation on depreciable, movable fixed assets, to the extent they are used for project-related purposes (new as of 2024).
• Work performed by sole proprietors or business partners: For work performed on or after January 1, 2026, €100 may be claimed for each documented hour of work (previously €70, and before that €40), limited to 40 hours per week. The increased rate also applies to projects already in progress.
• Overhead costs: For expenses incurred on or after January 1, 2026, a flat-rate surcharge of 20% will be applied to personnel costs, external R&D contracts, and capital expenditures, without the need for separate itemized documentation.

Austria (Research Bonus under Section 108c of the Income Tax Act (EStG) and the Research Promotion Act (FoPV))

• Wages and salaries for employees engaged in research and experimental development, including fees paid under related contracts for services.
• Direct expenses and direct investments, to the extent that they are used for research and experimental development, including the acquisition of real property.
• Financing expenses, to the extent that they are attributable to research and experimental development.
• Overhead costs, to the extent that they are attributable to research and experimental development. Unlike in Germany, there is no flat rate; the allocation must be substantiated on a pro rata basis.
• Notional entrepreneur's salary for sole proprietors, co-owners, and shareholders of a corporation who work without compensation: €50 per hour worked, up to a maximum of €86,000 per person per fiscal year.
• Contract Research: Expenses incurred by the contractor, excluding value-added tax, up to a maximum of €1 million per full fiscal year, provided that the contractor is headquartered in the EU/EEA and is a company or institution engaged in relevant research.

Germany (Research Allowance under the FZulG)

The process consists of two steps and is entirely digital. First, a technical project description is submitted via the online portal of the Research Tax Credit Certification Office (BSFZ) using a company ELSTER certificate. The BSFZ verifies only whether the project essentially qualifies as an eligible R&D project; processing typically takes 6 to 12 weeks. The certificate is sent to the company and directly to the tax office.

In the second step, the ELSTER form “Application for Determination of the Research Allowance” is submitted to the tax office. The applicant must sign the submission personally; service providers may only assist with the preparation and follow-up. The decision sets the allowance and applies it to the tax assessment. There is no strict application deadline; in practice, retroactive applications are possible for up to four years.

Austria (Research Bonus under Section 108c of the Income Tax Act)

Here, too, the process consists of two steps and is conducted exclusively through FinanzOnline. For in-house research, a free annual assessment from the FFG is a mandatory requirement, and it can only be requested after the fiscal year has ended. The FFG evaluates only the substantive requirements—and expressly not the amount of the expenses. The assessment is automatically forwarded to the tax office, which makes the final decision. No assessment is required for contract research.

The premium itself is claimed using Form E 108c and calculated by the applicant. The application period begins at the end of the fiscal year and ends four years later, regardless of the tax return. The premium is credited to the tax account retroactively to the date the application was filed. In the event of discrepancies with the expert opinion, a request for additional information will follow, and, if necessary, a decision that can be appealed. Optionally, a fee-based research confirmation pursuant to Section 118a of the Federal Tax Code (BAO) provides legal certainty even before the project begins.

Germany (Research Allowance under the FZulG)

A four-year assessment period applies to each project and expense period (Section 169(2)(2) of the German Fiscal Code (AO) in conjunction with Section 10 of the Federal Research Allowance Act (FZulG)). The period begins at the end of the fiscal year in which the relevant R&D expenses were incurred. Example: Expenses incurred in 2021 may be claimed until December 31, 2025. Since the BSFZ certificate is a preliminary assessment, it should be applied for as early as possible. What matters is that the application for assessment is received by the tax office within the deadline.

Austria (Research Bonus under Section 108c of the Income Tax Act)

Here, too, the retroactive period is four years, although it is regulated more clearly by law: The application period begins at the end of the last fiscal year and ends four years after its start (Section 108c(3) of the Income Tax Act (EStG)). The tax credit is applied for on a calendar-year basis; the tax base is determined by the fiscal year or fiscal years ending in that calendar year. Example: For the 2021 fiscal year (standard balance sheet date), the deadline runs until December 31, 2025. The application must be filed separately from the income tax, corporate income tax, or final tax return. Please note that for in-house research, the FFG annual report must be available; the request for this report must be planned accordingly in advance.

Germany (Research Allowance under the FZulG)

Once the assessment notice has been issued, the allowance functions as a tax credit: It is fully applied against the assessed tax during the next initial assessment of income tax or corporate income tax. If this results in a surplus in favor of the taxpayer, it is paid out as an income tax or corporate income tax refund. Thus, loss-making companies with no tax liability receive the full amount of the allowance. If the tax return for the next assessment period has not yet been filed, the tax office will, upon request, reduce the advance payments by the amount of the assessed allowance, up to a maximum of €0 (Section 10(2a) FZulG). The liquidity effect thus occurs significantly earlier, but in practice depends on the processing times at the BSFZ and the tax office.

Austria (Research Bonus under Section 108c of the Income Tax Act)

The premium is not offset against a tax liability but is credited directly to the tax account. The credit is retroactive to the date the application is filed. Any resulting credit balance can be paid out by submitting a refund request. Since the premium is profit-independent and does not constitute operating income, the liquidity benefit is realized in full even in years when the company reports a loss. If there is a risk of a significant delay in the decision, a separate assessment may be requested for specific projects pursuant to Section 108c(4a) of the Income Tax Act (EStG), so that the undisputed portion is credited in advance.