Tool
Calculate the research allowance
Six entries, one amount. Every number in this calculation is written in the Research Allowance Act, with its section.
Assessment base€300,000Allowance€105,000
The rates in the law
| 25% | of the assessment base, paid as the research allowance. | § 4 Abs. 1 |
|---|---|---|
| +10 points | for small and medium-sized enterprises, on application. | § 4 Abs. 1 |
| €100 | per documented hour of own work, at most 40 hours per week. | § 3 Abs. 3 |
| 70% | of the fee for contract research, if the contract was awarded after 27 March 2024. | § 3 Abs. 4 |
| 20% | flat overhead and operating costs, for projects started after 31 December 2025. | § 3 Abs. 3b |
| €12M | maximum assessment base per financial year from 2026, before that €10M. Affiliated companies share it. | § 3 Abs. 5 |
| €15M | for all state aid for one project together, per company. | § 4 Abs. 3 |
Source: Research Allowance Act (FZulG) as published on gesetze-im-internet.de on 9 September 2026.
What companies ask about the research allowance.
- Who is eligible for the research allowance?
- Taxpayers under the Income Tax Act or the Corporation Tax Act with income from agriculture and forestry, trade or self-employment who are not exempt from taxation (section 1 FZulG). For partnerships, the partnership itself is the claimant.
- How much is the research allowance?
- 25 percent of the assessment base. Small and medium-sized enterprises under the SME definition of the General Block Exemption Regulation can apply for an increase of ten percentage points, so 35 percent (section 4 (1) FZulG).
- Which expenses count?
- The wages of employees to the extent that they work on research and development in the eligible project, including employer contributions to their future security (section 3 (1) FZulG). In addition, own work at 100 euros per documented hour up to 40 hours per week (section 3 (3)), the depreciation of assets acquired after 27 March 2024 and used exclusively in the project (section 3 (3a)), 70 percent of the fee for contract research (section 3 (4)) and, for projects started after 31 December 2025, a flat overhead allowance of 20 percent on top (section 3 (3b)).
- Is there a ceiling?
- Two. For expenses from 1 January 2026 the assessment base is capped at 12 million euros per financial year, before that at 10 million euros; affiliated companies share the cap (section 3 (5) and (6) FZulG). And all state aid for a project together must not exceed 15 million euros per company and project (section 4 (3) FZulG).
- When and where is the research allowance applied for?
- After the end of the financial year in which the expenses were incurred, electronically at the tax office responsible for income taxation (section 5 (1) FZulG). For each project the application needs a certificate from the research allowance certification body confirming that the requirements of section 2 are met (section 5 (3), section 6 FZulG). The first certificate in a financial year is free of charge (section 6 (5) FZulG).
- What applies to contract research?
- Whoever commissions a project counts 70 percent of the fee as eligible expenses if the contract was awarded after 27 March 2024; for older contracts it is 60 percent. What the contractor passes on to subcontractors does not count (section 3 (4) FZulG).
Whether your project meets the requirements, we clarify in thirty minutes.
The calculator knows the rates. Whether a project is eligible, which hours count and how the application passes the certification body and the tax office is the work behind it. We do that with you.
Further reading: Calculating the Forschungszulage: what you actually get · The BSFZ certificate: process, criteria and processing time · Forschungszulage for contract research: the 60% rule and what has applied since 2024