Partner
Certified Tax Advisor
Research Allowance
The research allowance opens up new avenues for your company to drive innovation. However, the process is multifaceted. We bring clarity to the complex funding framework and provide reliable guidance through the tax-related aspects of the application and review process.
The tax research allowance offers companies the opportunity to strategically promote research and development projects and reduce their tax burden. The process is complex. From checking eligibility and comprehensive documentation of expenses to the two-stage application procedure.
We support you in determining the research allowance. In communication with the tax authorities, we lead the way for you and ensure smooth communication. This way, we master every stage together, from the initial project screening to the disbursement of the allowance, so that you can seize opportunities and shape the future.
Three Stages, One Goal. Your Research Allowance.
Stage 1: Certificate
The first step of the process is to submit your grant application to the Research Allowance Certification Office (BSFZ). To do so, you will need the following information:
- Project description
- Evidence of the technical eligibility criteria
The Research Allowance Certification Office (BSFZ) then issues a decision determining the project’s eligibility for funding.
Stage 2: Assessment
The second step is the application for the allowance. This includes:
- Proof of the financial assessment and eligibility criteria
- Reference to the BSFZ certificate
The tax office then takes action:
- Decision on eligible expenditure
- Determining the amount of the research tax credit
Stage 3: Offsetting & Payment
Finally, submit a request for the research allowance to be applied to your income tax or corporate income tax return.
The tax office will apply the credit against the assessed tax. Any excess amount will be refunded.
Your Questions. Our Answers.
There are crucial details to consider between eligibility and payment. We’ll navigate you through them.
Who is eligible?
All taxable companies – whether corporations, Mittelstand companies, or start-ups – are fundamentally eligible to utilize the research allowance. In addition to the basic eligibility of the R&D project, balance sheet and thus economic aspects also play a significant role. Specifically, the company must not be considered a company in difficulty. We clarify whether your company meets the requirements and guide you safely through the review.
What is eligible?
Eligible R&D projects include basic research, industrial research, or experimental development that started after January 1, 2020. Eligible costs include wages, eligible own expenses, usage-related depreciation, and 70% of the remuneration for contract research. We precisely classify your activities and pave the way to your funding volume.
How we support you.
- Tax advice on the optimal utilization of the research allowance
- • Preparation and follow-up of subsidy applications, including supporting documentation
- Tax classification and treatment of the research allowance
- Support during tax audits by financial authorities