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Tax incentives for research and development

|   Cluster News

On January 1, 2020, the law on tax subsidies for research and development initiated by the Federal Ministry of Finance came into force. This is intended to encourage German companies to invest more money in R&D in order to be able to survive successfully in international competition.

  • all taxable companies in Germany are eligible
  • in principle, all types of research and development projects are eligible
  • there are no restrictions on specific industries or activities
  • the funding also includes subcontracts to research institutions
  • so that small and medium-sized companies that do not have their own research can especially benefit
  • the research allowance is 25% of the eligible expenses including staff costs
  • in the case of contract research, 60 percent of the fee is recognized as eligible expenditure
  • the upper limit is limited to 2 million euros per company and fiscal year

https://www.bundesfinanzministerium.de/Content/DE/Standardartikel/Themen/Schlaglichter/Forschung-Entwicklung/2019-11-06-Foerderung-Forschung.html

 

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