What is the FZulG ?

Starting January 1st, 2020, the German government launched a new tax allowance for Research and Development called « Forschungszulagengesetz » (FZulG). This new financial tool allows German companies to register for a tax allowance of up to 25% on spending on innovative projects.

With their proven know-how and expertise on public research financing, our team of experts at EPSA Germany is happy to guide you through your FZulG application to maximize its impact on your business.

Who can apply for the FZulG ?

The new FZulG tax allowance is oriented towards German companies with R&D branches, no matter their size. Start-ups, SMEs, mid-cap companies and large corporations: companies paying corporate taxes are all eligible for FZulG. In legal terms, the company must be registered with the local chamber of commerce and present a clearly defined structure.

All sectors of R&D activity are concerned, especially industrial sectors such as: Pharmaceutical, automobile, aviation, cosmetics, IT, chemistry, biology, energy, electronics, optics and the like.

What are the advantages of the FZulG ?

The FZulG is calculated on the basis of your past year’s R&D spending. It covers up to 25% of eligible R&D costs and is capped at 4 million euros of declared expenses, for a total amount of up to 1 million euros per company, per year.

You may also register for other public financing and grants, but expenses are only eligible for aid once and cannot accumulate different forms of financial aid, tax allowances and credits.

Financing will be allocated in the form of a tax credit on future tax declarations, or will be deposited directly if the amount exceeds your previous year’s declaration. Reimburses are allowed under certain conditions, accelerating the financing process and creating an immediate cash flow for your company.

Our consulting services for your FZulG application

With over 300 experts in various domains, EPSA boasts precise technical and scientific knowledge spanning all types of activities: NICT software, chemistry, food-processing, medical and pharmaceutical, automobile, communications, SaaS and aeronautics, among others.

Our experts help innovative companies all over Europe in identifying financial aids to bolster their research and development. From the projects eligibility to the more specific technical aspects required in your application, we are capable of intervening at any stage of the process.