Promotion of Research and Development (Research Allowance Act - FZulG)

The tax research allowance according to the Research Allowance Act (FZulG) supports companies and start-ups based in Germany nationwide in the implementation of research & development projects. With a funding scope of up to 25 percent of eligible expenses, the allowance particularly relieves personnel costs for R&D, overhead costs, as well as other operating expenses. Applications can be submitted digitally at any time and undergo a two-stage process: First, the Research Allowance Certification Office (BSFZ) examines the eligibility of the submitted projects. After positive certification, this is presented to the responsible tax office to realize the tax relief.

Companies of all sizes with a tax domicile in Germany that conduct research independently or in collaborative projects benefit from this permanent funding opportunity. The prerequisite is proof of the calculated R&D expenses in a project description as well as an application for certification of eligibility. The Research Allowance Certification Office in Bonn, Berlin, Düsseldorf, and Dresden operates digitally to ensure quick decisions and maximum transparency. This tax allowance strengthens the innovative power of corporate research activities and helps to sustainably increase competitiveness in Germany.