The German R&D tax credit explained
This video explains the research allowance (Forschungszulage) in under two minutes: what qualifies, who can apply, how much funding is available (25%, SMEs 35%, up to €4,200,000 per year) – and why most first applications fail at the BSFZ certificate rather than at the tax office.
What the video covers
What the research allowance is
A tax-based R&D incentive with a legal entitlement – open to all technologies, industries and company sizes. Not a grant you win, but an allowance you receive once the criteria are met.
Who can apply
In principle every company subject to tax in Germany that carries out its own research and development – from sole traders to large groups.
How much you get
25% of eligible costs, 35% for SMEs, up to €4,200,000 per year.
Why first applications fail
Almost always at the first stage: the BSFZ certificate. The most common reason is a project description written in development language instead of research language.
The details in writing
The video gives you the overview. If you want to go deeper, these pages cover the figures, the requirements and the process in full:
Amount & rates Eligibility BSFZ certificate The application process Calculate your allowance Live ticker: latest changes