Research Funding
Only those who constantly rethink and develop their business models will remain competitive. Given the rapid pace of technological change, investment in research and development is essential. Most OECD countries have long supported research and development in companies – only Germany held back. In the meantime, however, Germany is also catching up in terms of research funding. After all, the innovative strength of German companies is a key success factor for Germany as a business location.
Technological and economic advancements have ultimately led to the introduction of a new tax incentive for research in Germany. This shift is driven by companies in leading industrialised nations increasingly investing in intangible assets such as design, research and development (R&D), and software, rather than traditional tangible assets like machinery, buildings, and computers. Across all industrial sectors, the utilisation of intangible assets has become essential for long-term success. This trend is also reflected in international tax competition, which focuses on enhancing a country's appeal for investment and innovation.
German lawmakers have now introduced a tax incentive for research to create growth-friendly conditions for investors. The goal is to particularly motivate small and medium-sized enterprises to invest more in R&D. However, navigating the maze of applications and requirements can be challenging. Which R&D projects are eligible for funding? Where should you submit the application, and what information must be disclosed? Ultimately, how much funding can be obtained?
Navigating this process requires not only expertise in tax law but also experience in state aid applications. The intricacies often lie in the application details. A multidisciplinary team of consultants from RSM Ebner Stolz, comprising auditors, tax advisors, and subsidy experts, is ready to assist you in maximising funding for your R&D project.
Our services at a glance
R&D project consulting
- Identification of potentially eligible projects
- Consultancy on the definition and presentation of the beneficiary projects
- Project description: creation or adaptation of the project plan to the requirements of the Research Allowances Act
- Support in the search for project partners
- Guidance on the differentiation of eligible personnel costs and expenses in contract research
- Support with the application for the certificate of eligibility
Project Management
- Identification of potentially eligible projects
- Consultancy on the definition and presentation of the beneficiary projects
- Project description: creation or adaptation of the project plan to the requirements of the Research Allowances Act
- Support in the search for project partners
- Guidance on the differentiation of eligible personnel costs and expenses in contract research
- Support with the application for the certificate of eligibility
Project Invoicing
- Support with applying to the tax office for the research allowance
- Support with inspections of allowances received by subsequent audit authorities (e.g. as part of tax audits)
- Advice on impending/upcoming reductions in the research allowance