Innovation has only a limited half-life! As an entrepreneur, you often find yourself in a dilemma as to whether you should apply for project funding or whether you would prefer to press ahead with the project without funding in order to reach the market more quickly.
Project funding has many advantages. One major benefit is that the risks, due to the grants not having to be paid back, are minimized for you. Unfortunately, many programs have the disadvantage that you are usually not allowed to start until you have been approved. Depending on the program, this can take several months.
With the tax research allowance, there is now a brand new instrument in the German funding landscape. Now you can also apply for your projects retroactively. This ensures that you can start implementing them immediately at your own risk. You do not have to prepare the application first or wait for the funding decision. Together with you, we can then write the application in peace, during the project period or even after the project has ended. It is important that you comply with the documentation requirements. Don't worry - our experts will of course also support you in structuring and setting up the project documentation!
What you should know now about government funding for research and development
The research allowance, also known as the tax research allowance, is a new R&D funding concept that came into effect on January 1, 2020.
The main eligibility requirements are:
gapplies to all companies regardless of industry or size
can be applied for before, during and after the start of the project
is a two-stage procedure:
Project description with application
Application for payment retrospectively annually with the tax return
25% of personnel costs and certain outside work are subsidized
annual funding of up to 1,000,000 euros is possible
the subsidy is tax-free
Who can apply?
The "Forschungszulage" is not restricted to certain industries.
The "Forschungszulage" applies to all German companies, regardless of their size.
How much is the grant and what is funded?
As part of the German government's Corona economic stimulus package, which was passed in June 2020, there have also been improvements to the tax-based research allowance. The assessment basis has been increased to 4 million euros per company.
The subsidy amounts to 25% of personnel expenses for research and development.
Beneficiary companies can receive an annual allowance of up to €1,000,000.
The new research allowance includes the following components:
Basic research,
industrial research and
experimental development.
Where to get support?
EurA is a strong partner at your side. We are Germany's leading consulting company for research, development and market launch of innovative products.
We support you from the very beginning: From the conception of your innovation project, to the preparation of funding applications, to project monitoring and accounting for the funding - and beyond. We accompany you in collaborative projects and throughout the entire innovation process.
Would you like to learn more about the "Forschungszulage"? Read more on this page.
Get informed early - you will benefit!
Author: Tobias Kübler
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