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A tax allowance of up to 500.000 Euros per year for research and development activities is possible since 1 January 2020. The new German Allowance Act (German: Forschungszulage) fosters companies and organisations located in Germany by lowering their costs for R&D. With this new scheme, the Forschungszulage aims to give new impetus to the German economy and to make Germany more attractive as a business location for innovative companies. It also closes a gap with other EU countries, many of which already have similar incentives in place.
How can my innovation benefit?
First of all, you profit from an allowance of 25 percent of the eligible costs with a yearly maximum of 500.000 Euros. The allowance comes into effect at the end of the financial year in which the eligible expenses have been made. It will be deducted directly from the tax burden.
Find out the second way to profit from the brand-new R&D tax credit now available in Germany here.
Does my research and development undertaking qualify?
Research and development projects are eligible if they belong to one or more of three categories.:
As there are a lot of projects which fall into the last category, a large number of companies will qualify for the allowance. Only intended and planned project-related R&D activities will qualify.
Is my company eligible for tax allowance?
Pretty much every innovating company or organisation is eligible. Although the Forschungszulage act specifically targets small and medium sized companies, start-ups, large corporations and (private) research organizations qualify as well. The allowance is available for organisations of any size.
In order to apply for the new R&D tax credit, there are three criteria to be met.
How do PNO and Ttax cooperate to boost my innovation?
The Forschungszulage scheme offers an attractive opportunity for every innovative company or organisation in Germany. Unfortunately, many organisations face a lack of time, resources or expertise to keep track of Forschungszulage developments. The timely preparation and filing of an optimal, fully compliant R&D allowance application might also be a problem. That’s where we can help: PNO, the leading European grants and innovation consultancy with 30 years of experience in R&D tax allowance.
Our comprehensive service comprises four clear steps:
To find out more about our four-step-approach, click here.
We are eager to put our experts to work for you.
For more information and applications visit www.fzulg.eu.Top of page