Apply for the R&D Tax Credit –
Step by Step to Success

Why File a Professional Application?

The R&D tax credit (FZulG) is one of the most attractive tax incentives for research-active companies in Germany. However, the application process is two-staged and complex: First, you must obtain a certificate from the BSFZ (Bescheinigungsstelle Forschungszulage) before you can apply for the R&D tax credit at the tax office.

This dual process presents numerous potential pitfalls. Our experience shows: approximately 70% of all self-filed applications contain formal or substantive deficiencies that can lead to delays, reductions, or even complete rejection. Typical problems include imprecise project descriptions, incorrect cost calculations, or insufficient distinction between R&D activities and routine work.

NOVARIS Consulting guides you as a specialized full-service partner through the entire process – from the initial analysis of your R&D projects to the successful payout. Our fee is purely success-based: No success – no fee. NOVARIS is the most affordable provider on the market – and the only one with a 100% success rate in R&D tax credit applications.

Important: Incorrect or manipulated time tracking can be classified by the tax office as tax fraud – with criminal consequences, fines, and back payments with interest. Professional support with documentation protects you from this risk.

The 7 Most Common Application Mistakes

Avoid these typical pitfalls that repeatedly lead to delays, reductions, or rejections. Click on a mistake to learn more.

R&D Tax Credit Application: Forms and Portals

To successfully apply for the R&D tax credit, you need to be familiar with two key forms and portals: the electronic BSFZ application and the Annex FZ for the tax office. Both are mandatory and build upon each other.

The BSFZ Portal: Electronic Application

The application at the Bescheinigungsstelle Forschungszulage (BSFZ) is submitted exclusively electronically via the BSFZ Online Portal. Authentication is via the ELSTER organizational certificate – the same one you use for tax filings. The following information is required:

• Company data: Legal form, tax number, industry code, number of employees, and annual revenue
• Project descriptions: Detailed presentation of each R&D project including technical novelty, uncertainties, and methodology
• Project period: Start and end dates of the respective R&D activities
• R&D category classification: Basic research, industrial research, or experimental development according to §2 FZulG

The Annex FZ: Application at the Tax Office

After receiving your BSFZ certificate, the second step follows: the Annex FZ (Anlage Forschungszulage). This form is filed together with your corporate or income tax return at your local tax office. The Annex FZ contains:

• BSFZ certificate number: The unique reference number of your certificate
• Eligible expenditures: Personnel costs (gross employer spend), owner contributions, and where applicable contract research costs (70% of invoiced amounts)
• Assessment base: The sum of all eligible expenditures (max. EUR 4M per year, or EUR 2M until 2023)
• Claimed R&D tax credit: 25% of the assessment base (max. EUR 1M per year from 2024)

Frequently Asked Questions About the Forms

Can I submit the BSFZ application in paper form? – No, the BSFZ application must be submitted exclusively electronically via the online portal. Postal submission is not possible.

Do I need a separate ELSTER certificate for the BSFZ? – No, you can use your existing ELSTER organizational certificate that you already use for your tax filings.

What happens if I forget the Annex FZ? – Without the Annex FZ, the tax office cannot determine the R&D tax credit. However, you can submit it later as long as the tax assessment has not yet become legally binding. We recommend always filing the Annex FZ at the same time as your tax return.

Cost of the Application Process

One of the most common questions is: Is it worth hiring a consultant for the R&D tax credit? The answer depends on your internal resources and the complexity of your R&D projects.

Filing the application yourself (DIY)

In principle, you can file the R&D tax credit application yourself. Submission via the BSFZ portal and the Annex FZ are free of charge. However, you should not underestimate the internal effort:

• Learning curve: You need to familiarize yourself with the FZulG, BSFZ evaluation criteria, and the Frascati definition of R&D (typically 20–40 hours)
• Project documentation: Writing BSFZ-compliant project descriptions requires precise formulations and knowledge of the evaluation practice
• Rejection risk: Without experience, the rejection or reduction rate is significantly higher – a rejection costs additional months and rework

Hire a Specialized Consultant

A specialized R&D tax credit consultant handles the entire application process – from identifying eligible projects to the BSFZ application to the tax office filing. This saves you dozens of hours of learning time and eliminates rejection risk. The key advantage: you only pay upon success.

Why Professional Consulting is Worth the Investment

In our practice, we regularly see that professionally guided applications result in 20–40% higher funding amounts than self-filed applications. The reasons:

• More eligible projects identified: Many companies overlook R&D activities that would qualify – a specialist also identifies hidden R&D potential
• Optimized assessment base: Correct capture of all personnel costs, owner contributions, and overhead costs maximizes the funding amount
• Higher success rate: Professionally formulated applications are less frequently rejected or reduced
• Retroactive claims: A specialist checks whether you can claim retroactively for past years – often a significant additional funding potential

With a typical R&D tax credit of EUR 50,000 to 250,000 per year, the added value of professional consulting typically far exceeds the cost – especially with a success-based model where you only pay upon successful payout.