In Germany, the main R&D Tax Incentive, known as the Forschungszulage (R&D Allowance), supports companies involved in research and development.
The program enables businesses to claim a portion of qualifying R&D expenditures, helping to offset their costs. It applies to a wide range of sectors, including technology, engineering, agriculture, and healthcare.
The system is accessible to companies of all sizes conducting eligible R&D activities. Key eligible costs include staff wages related to R&D, contract research and depreciation on movable assets. The allowance allows businesses to reduce their tax liabilities by applying for this incentive, and claims can typically be made for past R&D activities.
While there are no separate schemes based on company size, the system in Germany is a significant opportunity for companies to foster innovation and reduce R&D-related costs.
The German government supports companies with the research allowance (‘FZulG’) to promote research and development (R&D). The law has been in force since 1 January 2020. For R&D projects, up to 25% of eligible expenses can be claimed up to a maximum of €4 million per year. Since March 2024, improved conditions have applied under the Growth Opportunities Act: the maximum eligible expenses have been increased to €10 million per year and small and medium-sized enterprises (SMEs) can claim up to 35%. Up to 70% of contract research is eligible and depreciation on movable assets purchased for the R&D project are also now inlcuded. A flat rate of £70 per hour for own work are also eligible.
CONTACT USIn Germany, various funding programmes and incentives are available to SMEs that implement innovative projects and companies that invest in energy efficiency or climate-friendly measures. The best-known of these include the Central Innovation Programme for SMEs (ZIM), ‘KMU-innovativ’ for research and development, the ProFIT programme for the promotion of innovative technologies, the Energy Efficiency Directive (EEW) and various EU funding programmes. These programmes offer financial support and advice to help companies implement their projects and promote sustainable innovation. Feel free to contact us for a free preliminary discussion to find out which funding programmes are most suitable for your company and how we can support you with your application.
Your claim is supported by a multi-disciplinary team of specialists, ensuring technically sound R&D Tax Relief claims. We provide continuous engagement and post-claim support.
We have been successfully supporting companies from a wide range of industries in applying for the research allowance since the Research Allowance Act came into force on 1 January 2020. With an impressive success rate of over 98%, we stand for sound expertise and the highest quality in application submission. As part of the world's largest VAT recovery group, we bring unrivalled expertise to the table.
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Up to 48.5% of qualifying expenditure can be claimed as a tax offset via the R&D Tax Incentive which is governed by the Income Tax Assessment Act.
A 150% supercharged tax deduction on qualifying expenditure is available via the R&D Tax Incentive which is contained in the Income Tax Act.
The UK’s new merged R&D Tax Incentive scheme offers tax relief of up to 27% on R&D expenditure.
We assist companies across the globe with R&D Tax Incentive related claims and obtain R&D Tax Incentives for some of the world’s largest listed companies.
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