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Find out in 2 minutes whether your company is entitled to up to EUR 4.2 million in R&D tax credits.
Answer the following questions to receive an initial assessment of your funding eligibility.
The R&D Tax Credit under the Research Allowance Act (FZulG) is generally available to all companies that are subject to unlimited or limited income or corporate tax in Germany. This means: sole proprietorships, partnerships (GbR, OHG, KG), corporations (GmbH, AG, UG) and even branches of foreign companies with German permanent establishments can apply for the R&D Tax Credit. The legal form is irrelevant, as are the company size or industry. The only decisive factor is that the company carries out its own or commissioned research and development projects pursuant to § 2 FZulG and is tax-liable in Germany.
Companies that are currently not generating profits also benefit from the R&D Tax Credit. Since the allowance is directly offset against the tax liability and paid out as a refund in case of a surplus, startups and companies in the growth phase also receive an immediate improvement in liquidity. This makes the FZulG one of the most attractive funding instruments for research-active companies in Germany.
The FZulG defines eligible R&D projects based on the OECD Frascati Manual. Projects that aim to gain new knowledge and meet one of the following three criteria are eligible: they constitute basic research, industrial research, or experimental development. A project must be carried out systematically, methodically and verifiably. There must also be a technical uncertainty that cannot be resolved by merely applying existing knowledge.
Concrete examples of eligible projects include the development of novel software algorithms, research into new materials, construction of innovative machine components, development of new pharmaceutical active ingredients, or testing of environmentally friendly production processes. Projects in which existing products or processes are significantly improved can also be eligible, provided that technical challenges need to be overcome.
Experimentelle oder theoretische Arbeiten zur Gewinnung neuen Wissens — ohne vorbestimmte kommerzielle Anwendung.
Systematic research aimed at developing new products, processes, or services.
Nutzen vorhandener Erkenntnisse zur Herstellung neuer oder wesentlich verbesserter Produkte.
Not every technical activity automatically qualifies as R&D under the FZulG:
The distinction between eligible experimental development and routine activities is often the biggest challenge in practice. NOVARIS Consulting supports you with expert knowledge to correctly classify your projects and convincingly demonstrate their eligibility.
Partnerships (GbR, OHG, KG) can also apply for the R&D Tax Credit. In this case, the allowance is allocated proportionally to the partners, who claim it in their personal tax returns. For affiliated companies under EU state aid law, the maximum assessment basis of EUR 12 million applies cumulatively for all affiliated companies combined. Startups benefit particularly: since the R&D Tax Credit is paid out as a tax refund even in the absence of profits, it immediately improves liquidity during the often capital-intensive founding phase. German subsidiaries of foreign corporations are also eligible, provided they are independently tax-liable and the R&D activities are carried out in or commissioned from Germany.
Many companies underestimate their R&D potential. A systematic analysis by NOVARIS regularly uncovers 30-50% more eligible projects.
Flat overhead surcharge on personnel costs — for premises, equipment, software licenses. Directly increases the assessment base.
Make use of still-open tax years! With 10 R&D employees, retroactive funding can quickly reach six figures.
Document in compliance — faulty time tracking endangers the entire application. NOVARIS helps with setup.
Want to calculate your specific funding potential? Use our interactive R&D Tax Credit Calculator to get an initial estimate of your funding amount in 30 seconds.
Not sure if your projects are eligible? Here you will find typical examples of eligible projects — sorted by the most common industries.
Software development is eligible when it aims for technical novelty. Eligible examples:
In mechanical engineering, developments where existing design principles are insufficient are particularly relevant:
Particularly research-intensive industries with high funding potential:
The energy transition drives intensive R&D activities:
Deepen your knowledge with our specialized resources:
All statements regarding eligible base, funding rates, and application process are based exclusively on the following official legal sources and authority documents. Research date: .
Note: This page does not replace individual tax advice. For a binding assessment of your project, please contact us or your tax advisor.
