• What kind of projects are eligible for FZulG ?

What kind of projects are eligible for FZulG ?

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Examples of eligible projects:

Clinical trials, Prototype Development, Analysis of test data, New methods and processes as well as Contract research.

Additional activities, which can also be considered as research depending on their characteristics include : Quality control in direct connection with a research project, Technology-related working time for the management of scientific personnel, Trial production, if the production requires series tests/design and engineering work and Brainstorming discussions on technical problem solutions during the project.

Research and Development activities eligible for the FZulG tax allowance are clearly defined in the Frascati Manual (the international reference for R&D projects). Three main categories are concerned:

  • Basic research (analysis of the properties and structure of elements)
  • Applied research (application and use of results stemming from basic research)
  • Experimental development (creating new products and procedures)

The nature and kind of R&D project will condition the company’s eligibility to the
“Forschungszulagengesetz” tax allowance. Also, the Research and Development project must be in compliance with current taxation and fiscal guidelines.

The project must tackle particular scientific issues and technical difficulties and propose pertinent solutions through technological innovation advanced by the company in their current field. Applications must respect these criteria of eligibility concerning the project’s nature and scope.

Is your project eligible or not? Two examples

  • In the Software and IT sector, developing a new algorithm may give you access to FZulG. However, using preexisting tools to build a new web page isn’t considered R&D and will therefore be rejected.
  • In the Pharma industry, phases I, II and III of clinical trials may be eligible to FZulG, whereas phase IV will only be eligible if it proposes new findings. In the same vein, marketing activities are not eligible.
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What kind of expenses are eligible for FZulG ?

All spending pertaining to Research and Development (R&D) is eligible for a FZulG tax allowance.

R&D expenses eligible for a tax allowance can be found in two categories:

  • Upcoming payroll and staffing costs stemming from an approved R&D project (brut salary and employers’ contributions).
  • Subcontracting costs tied to a R&D project conducted inside the European Economic Area (up to 60%).
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Are your projects eligible for FZulG?

Our experts in public financing offer a free audit to estimate your project’s eligibility. Please complete our online form and we will contact you as soon as possible.

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