Secure up to 3.5 million euros back with the Research & Development Tax Credit

Welcome to the world of innovation and support in Biotechnology Software Automotive Telecommunication

The R&D Tax Credit (FZulG), in effect since January 2020, is your ticket to government support for research and development projects in Germany.

Whether you’re new to the business or an established large company, this law helps you advance your innovative projects and provides financial support for your ambitious goals.

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Your benefits at a glance

R&D Tax Credit (Forschungszulage)

The law allows you to reclaim up to 25% of your past research expenses. With the upcoming introduction of the Growth Opportunities Act in April 2024, these opportunities will be further expanded and improved:

Increased funding rates: For contract research, the funding rate for large companies rises to up to 17.5% and for SMEs, it increases to up to 24.5%.
Additional eligible cost categories: New additions include 25% for depreciations (AfA) for prototype costs.
Maximum annual funding increases: Large companies can receive up to 2.5 million euros, while SMEs can receive up to 3.5 million euros per year.
Improved conditions for shareholder participation: Compensation is raised to up to €70 per hour.
Exclusive SME bonus: An additional 10% bonus, raising the funding rates to 35%.

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Who can benefit from the R&D Tax Credit?

Unlocking R&D Funding: Identifying Beneficiaries and Project Priorities

Any tax-paying company based in Germany can apply for the credit. The support is open to various industries and activities, ranging from pharmaceuticals and biotechnology to software development, renewable energy, and automotive technology.

The R&D Tax Credit defines eligible projects very broadly:

Basic research: New knowledge without direct application.
Applied research: Solutions aimed at specific practical goals.
Experimental development: Development of new products or processes.

Tailored Approaches for Maximizing Returns Across Diverse Sectors

Discover industry-specific innovation opportunities with the R&D Tax Credit

Biotechnology and Pharmaceuticals
Maximize your growth potential in pharma & biotechnology!
Learn how the R&D Tax Credit can support your projects in drug development and biotechnological innovations.

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Solar Energy and Renewable Resources
Strengthen your innovations in renewable energy with research tax credits that help you develop and implement sustainable technologies.

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Fibre laser robotic remote cutting system

Mechanical Engineering.
Unlock your innovation potential in mechanical engineering. Enhance your technologies in automotive, aerospace, and renewable energy sectors through targeted R&D investments.

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Food scientist using the microscope at the university

Medical Technology
Transform healthcare with innovative medical technology. Utilize tax incentives to invest in the development and improvement of medical devices and technologies.

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Telecommunications
Unleash innovations in telecommunications, from 5G technologies to advanced wireless communication standards.

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Supercharge Your Innovation Journey

Become Part of EPSA’s R&D Tax Credit Success Story

400 *M€ net revenue in 2023 (*forecast)

300 *K€ on average credit claim

5 000Clients

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The application process

Step by step to your funding

Project Identification: We analyze your projects to capture the relevant aspects.

Preparation of Application Documents: In close coordination with you, our experts prepare the application documents focusing on eligible development aspects.

Application to the BSFZ: We handle all the bureaucracy and submit the application to the Certification Office for Research Tax Credits (BSFZ) on your behalf. We also support you in case of any additional requests.

Cost Determination: Together with our experts, we identify the relevant costs and optimize them for submission to the tax office.

Submission to the tax office: After the end of the fiscal year, you or your tax advisor submit the application for the research tax credit to realize financial benefits.

FAQ

All you need to know about Forschungszulage

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How does the R&D Tax Credit work?

The R&D Tax Credit is a tax incentive for companies engaged in research and development activities. The credit allows for the retrospective tax deduction of incurred employee costs and external development contracts from January 2, 2020.

How is the R&D Tax Credit paid out?

The credit is offset against the next assessment of income or corporate tax. If the credit exceeds the tax liability, the excess amount is refunded.

How do you apply for the R&D Tax Credit?

The process starts with applying for a certificate from the Certification Office for Research Tax Credits (BSFZ), which confirms the existence of an eligible R&D project. This certificate is submitted along with the commercial accounts to the tax office.

How do we identify eligible projects?

Eligible projects must encompass clearly defined research and development activities that can be classified according to the criteria of the Frascati Manual as basic research, applied research, or experimental development. It’s crucial that the projects are novel and aimed at expanding technical or scientific knowledge.