Launch of a new German R&D tax allowance scheme

From 1 January 2020 onwards, companies and organizations located in Germany can receive a tax allowance (Forschungszulage) of up to € 500,000 per year for their research and development activities. This results from the German Research Allowance Act (FZuIG for short) that got approved by the legislator at the end of last year.

The German Research Allowance Act in short:

  • All basic research, industrial research and experimental development projects can qualify for this type of funding.
  • The funding amounts to 25% of
    • The labour costs of your involved R&D staff, and
    • The costs of outsourced R&D work (60% of those costs are eligible)

This up to € 2,000,000 in total costs, resulting in a maximum Forschungszulage (tax allowance) of € 500,000 per financial year.

  • Applications can be submitted later this year (exact date yet to be announced) with retroactive effect from January 1, 2020.

The PNO Group is a specialist in such funding schemes. Based on our extensive R&D tax allowance experience in other EU countries (we file approximately 3.000 R&D tax allowance applications per year for our clients, with a success rate of more than 95%), we consider it highly likely that your R&D projects will also be eligible.

Although applications can only be filed later this year, the retroactive effect makes it important to already act now, and set up a project and your project organization and administration according to the specific requirements so that an optimal tax allowance can be secured later this year.

More information can be found in the Fact sheet. If you are interested in this opportunity, please contact