R&D Tax Credit in the Tax System: Where It Applies
The R&D tax credit under the FZulG is not a traditional subsidy or grant, but a genuine tax credit. It is assessed pursuant to §4 FZulG within the corporate or income tax assessment and directly offset against the assessed tax.
In practice: The tax office first assesses corporate tax (for GmbH, AG, UG) or income tax (for sole proprietorships and partnerships) as usual. The R&D credit is then assessed as a separate notice and deducted from the tax liability.
The key advantage over other funding programs:
- Offset against tax liability: The R&D credit directly reduces the corporate tax payable.
- Refund of excess: If the credit exceeds the tax liability, the difference is directly refunded – a payment to the company account.
- Not a grant, but a legal entitlement: Unlike funding programs, there is a statutory right. There is no discretion and no budget that can be exhausted.
- Independent of profit situation: Even companies in loss years receive the full R&D credit as a refund.
The Anlage FZ: Application at the Tax Office
The R&D credit is applied for at the responsible tax office via the Anlage FZ form. Submission is electronic through the ELSTER portal – just like the regular tax return.
Content of the Anlage FZ
The Anlage FZ contains all essential information for the R&D credit application:
- BSFZ Certificate: The certificate number from the positive assessment by the Certification Body (BSFZ). Without a BSFZ certificate, no R&D credit can be assessed.
- Eligible expenditures: Detailed breakdown of personnel costs (gross wages and salaries), own contributions by sole proprietors, and contract research costs (70% of remuneration).
- Assessment base: The sum of all eligible expenditures, limited to the maximum assessment base (EUR 4M until 2023, EUR 12M from 2024).
- Requested R&D credit: The calculated funding amount (25% or 35% for SMEs from 2024).
Submission Timing
The Anlage FZ can be submitted together with the tax return, but this is not required. It can also be submitted separately and independently at the tax office. The only prerequisite is that the BSFZ certificate is already available.
Offset Against Corporate Tax
Offsetting the R&D credit against corporate tax is straightforward: The assessed credit is deducted from the assessed corporate tax. Depending on the ratio, two scenarios arise:
Scenario 1: Tax Liability Exceeds R&D Credit
When the corporate tax liability exceeds the R&D credit, the credit reduces the tax payable. The company only pays the difference.
Scenario 2: R&D Credit Exceeds Tax Liability
When the R&D credit exceeds the tax liability, the surplus is directly refunded to the company. This is particularly relevant for high-growth companies with significant R&D expenditures and comparatively low tax liability.
| Scenario | CIT Liability | R&D Credit | Result |
|---|---|---|---|
| A: Partial Offset | 200.000 EUR | 150.000 EUR | EUR 50,000 Remaining |
| B: Full Offset + Refund | 80.000 EUR | 150.000 EUR | EUR 70,000 Refund |
| C: No Tax Liability | 0 EUR | 150.000 EUR | EUR 150,000 Refund |
| D: Exact Offset | 150.000 EUR | 150.000 EUR | EUR 0 – Fully Offset |
Detailed example (Scenario B): A GmbH has a corporate tax liability of EUR 80,000 for fiscal year 2025. An R&D credit of EUR 150,000 is assessed (based on EUR 600,000 personnel costs x 25%). The credit exceeds the tax liability by EUR 70,000. This amount is directly refunded to the company account.
Trade Tax: No Addition
A frequently asked question concerns the trade tax treatment of the R&D credit. The answer is clear and positive: The R&D credit is completely exempt from trade tax.
This follows directly from §4 para. 3 FZulG, which expressly states that the R&D credit is not considered when determining trade income:
- No addition: The R&D credit is not treated as income and is not added to trade income.
- No effect on the trade tax assessment: The trade tax assessment base remains unaffected.
- No effect on the multiplier: The company's trade tax burden does not change.
- No reporting obligation: The R&D credit does not need to be separately reported in the trade tax return.
Income Tax for Partnerships
The R&D credit is available not only to corporations (GmbH, AG) but also to partnerships such as GbR, KG, and OHG. Since partnerships are not subject to corporate tax, the offset occurs at the level of individual partners against their income tax.
Distribution to Partners
The R&D credit is distributed among partners according to the distribution key of the partnership. This typically corresponds to the profit distribution key per the partnership agreement. Each partner receives their share as a credit against their personal income tax.
Special Rules for Limited Partnerships (KG)
In a KG, the R&D credit is distributed among general and limited partners per the partnership agreement. Important: Even limited partners not actively involved in management receive their share.
Sole Proprietors
For sole proprietorships, the credit is directly offset against the owner's income tax. Additionally, sole proprietors can claim the own-contribution allowance (EUR 100/hour, max. 40h/week) as an assessment base – a significant advantage. Learn more in our guide GmbH vs. Sole Proprietorship Funding Comparison FZulG 2026 Update Eligibility Check.
Impact on Loss Carryforwards
One of the most attractive features of the R&D credit is its complete independence from the profit situation. This has far-reaching consequences for companies with loss carryforwards:
- No reduction of loss carryforward: The R&D credit does not reduce the existing loss carryforward. It is fully preserved and can continue to be utilized in future years.
- Payout despite losses: Even if the company has incurred a loss and has no tax liability, the R&D credit is refunded in full.
- No offset against loss carryforward: The R&D credit is not set off against existing loss carryforwards – it is available in addition.
This distinguishes the R&D credit from tax benefits such as special depreciation, which only take effect when taxable profit exists. The R&D credit is a "genuine" incentive that develops its full effect even in economically difficult phases.
FAQ: R&D Tax Credit & Corporate Tax
No. Pursuant to §4 para. 3 FZulG, the R&D credit is expressly exempt from trade tax. It is not added when determining trade income and has no effect on the trade tax assessment. The entire credit remains with the company without trade tax burden.
If the assessed R&D credit exceeds the corporate or income tax liability, the difference is directly refunded. It is a genuine tax credit. Example: With CIT liability of EUR 80,000 and an R&D credit of EUR 150,000, the company receives EUR 70,000 as a direct refund.
No, the Anlage FZ can be submitted separately from the tax return at the tax office. Submission is electronic via ELSTER. The only prerequisite is that the BSFZ certificate is already available. Submit promptly after receiving the certificate to accelerate the payout process.
No, the R&D credit has no effect on loss carryforwards. It is assessed and paid regardless of profit. An existing loss carryforward is neither reduced nor affected. This makes it particularly attractive for startups who receive the full funding as a direct refund despite having no tax liability.
Further Resources on the R&D Tax Credit
Deepen your knowledge with our specialized resources:
The complete overview of the FZulG 2026
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Correct accounting treatment
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Step-by-step application guide
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Process, timeline, and offset
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Legal-form-specific differences
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