In a rapidly evolving business landscape, innovation is the key to success.

The research subsidy is a crucial source of support for businesses looking to invest in research and development (R&D). At Peak Orange Consulting, we not only provide insight into this vital funding instrument but also the expertise to ensure it is optimally leveraged for your project.

01 What is "Forschungszulage"?
02 Who can get the research allowance?
03 What is being funded?
04 How much is the subsidy?
05 Discover your funding potential

01 What is "Forschungszulage"?

The research allowance is a fiscal incentive introduced by the federal government to encourage investment in research and development. The key feature of this incentive is the ability to offset a portion of expenses incurred on R&D projects from the tax liability. The objective is to foster innovation and strengthen Germany's position as a technology hub.

02 Who can get the research allowance?

The research allowance is available to a wide range of taxable businesses in Germany. It is irrelevant whether your company is a sole trader, part of a partnership or a capital company – what matters is that it generates taxable income in line with the legal requirements.

This allows businesses of all sizes and types to pursue their innovation projects with support.

03 What is being funded?

This is where the true strength of the research allowance is revealed: the range of eligible projects is broad and includes not only traditional research, but also the development and significant improvement of products and technologies. 

Whether you are at the forefront of basic research, developing innovative processes in industrial research or looking to surpass the current state of the art through experimental development, your projects can be supported by the research allowance. This flexibility enables companies in all sectors to drive forward their innovation goals and realize technological innovations.

04 How much is the subsidy?

The amount of research allowance is calculated based on your qualified F&E expenditures. Your company is eligible to receive up to 25% of these costs. This also includes commissioned research, enabling the costs of external research services to be reimbursed on an incremental basis. The legislation defines an upper limit to ensure a consistent level of funding, which includes a wide range of companies and projects and thus strengthens the innovation capacity at the location in Germany over the long term.

To determine the potential subsidy amount, please refer to the following example:
Two internal employees worked on a research project from January 2021 to December 2022, each contributing 50% of their time. Additionally, you engaged an external firm with a personnel budget of €80,000 for the project.

Calculation example
Staff costs per month8.000 €
Person-months in the project24
Internationally comparable costs192.000 €
Funding rate Intern 25%48.000 €
External Costs80.000 €
Funding rate Extern 15%12.000 €
Total funding
60.000 €

05 Discover your funding potential

Peak Orange Consulting is committed to providing flexible and individualised solutions. To explore the potential for your project, we invite you to take advantage of our complimentary feasibility assessment, tailored to your schedule. Together, we will identify the opportunities that align with your objectives.

For further information or to discuss your project, please do not hesitate to contact us via email or telephone. We are dedicated to understanding your needs and objectives.

Check your potential now