How the Forschungszulage Is Calculated
The Forschungszulage (R&D tax credit) is determined in three steps: First, collect all eligible R&D costs. Then determine the assessment base (Bemessungsgrundlage, capped at €12 million per fiscal year). Finally, apply the funding rate — 25% for large enterprises, 35% for SMEs.
Step 1
Identify eligible R&D costs: personnel, owner contributions, contract research, materials
Step 2
Calculate the assessment base (capped at €12M per year)
Which Costs Count Toward the Assessment Base?
Not every R&D expense qualifies. The Forschungszulagengesetz (FZulG) defines four cost categories that enter the calculation. Prerequisite: expenditures must relate to projects meeting the three R&D criteria — novelty, technical risk, and systematic approach.
Not eligible: general administrative overhead, building rent, non-project IT costs, and sales/marketing expenses. Accurate time tracking is essential so the tax office can verify R&D allocation.
Calculating the Assessment Base: Step by Step
The assessment base (Bemessungsgrundlage) is the sum of all eligible R&D costs — capped at €12 million per fiscal year. This yields a maximum Forschungszulage of €4.2M (at 35%) or €3M (at 25%).
In this example the assessment base is €500,000 — well below the €12M cap. Most mid-sized companies do not exhaust the ceiling. What matters most is capturing all eligible costs completely.
Calculation Examples: SME vs. Large Enterprise
The difference between 25% and 35% is substantial. Here are three concrete scenarios for different company sizes:
Example 1: Small Software Company (SME, 35%)
Example 2: Mid-Sized Mechanical Engineering Firm (SME, 35%)
Example 3: Large Enterprise (25%)
Calculating Owner Contributions (Eigenleistungen)
Shareholders and sole proprietors performing R&D themselves can claim owner contributions at a flat rate of €100 per hour. This applies regardless of actual salary or profit distributions.
Important: The maximum is 40 hours per week per person. Hours must be documented through proper time tracking. Owner contributions are particularly valuable for founder-led GmbHs and sole proprietorships.
Contract Research: Understanding the 70% Rule
When you outsource R&D to external providers, universities, or research institutes, only 70% of the invoice amount is recognized as assessment base. The rationale: the legislator assumes 30% covers the contractor’s overhead and profit margin.
Note: Contract research within the EU/EEA is also eligible. Contracts with providers outside the EEA are not recognized. Ensure the R&D nature is clearly documented in the contract.
Maximum Funding: Up to €4.2 Million per Year
The maximum Forschungszulage is derived from the assessment base (max €12M) multiplied by the funding rate:
Large Enterprise
€12,000,000 × 25% = €3,000,000
SME (35%)
€12,000,000 × 35% = €4,200,000
You can also claim retroactively for up to 4 prior years. That creates a theoretical maximum of 4 × €4.2M = €16.8M for SMEs. The credit is claimed via the tax office application and offset against corporate or income tax — or paid out directly.
5 Common Calculation Mistakes — and How to Avoid Them
Claiming contract research at 100%
The most common mistake: including external R&D invoices at full value. Only 70% counts. On a €500,000 contract, miscalculating loses €150,000 of eligible base.
Forgetting owner contributions
Managing directors who are shareholders can claim owner contributions at €100/hr. With 800 R&D hours/year, that adds €80,000 to the base — up to €28,000 more credit.
Not properly allocating R&D shares
Employees who split time between R&D and other work must be pro-rated. Accurate time tracking is essential — the tax office will not accept rough estimates.
Not calculating retroactive years
The Forschungszulage can be claimed retroactively. Many companies only calculate the current year and miss out on multiple annual credits.
Not verifying SME status
Companies qualifying as SMEs sometimes calculate with 25% instead of 35%. On a €500,000 base, that means €50,000 less credit.
Frequently Asked Questions About Calculating the Forschungszulage
First, identify your eligible R&D costs: personnel costs, owner contributions (€100/hr), contract research (70%), and material costs. The total is your assessment base (capped at €12M). Multiply by 25% (large enterprise) or 35% (SME). Use our online calculator for a quick estimate.
The assessment base is the sum of all eligible R&D costs per fiscal year. It is capped at €12 million. Even if your R&D costs are €20 million, only €12 million is used for the calculation. The maximum Forschungszulage is therefore €4.2M (SME) or €3M (large enterprise).
The legislator assumes that 30% of the invoice covers the contractor’s overhead and profit margin. Only the pure R&D portion (70%) enters the assessment base. This rule applies regardless of the actual cost breakdown. Learn more: Contract research →
Yes. Managing directors who are shareholders of a GmbH can claim owner contributions at €100/hr, provided they personally perform R&D. Limited partners (KG) and OHG partners are also eligible. Owner contributions are claimed in addition to regular personnel costs.
NOVARIS Consulting works on a success-based fee model. You only pay when your Forschungszulage is approved — zero risk for you. In the free initial consultation, we calculate your potential funding amount. Schedule a free consultation →