The German R&D tax incentive scheme (Forschungszulagengesetz, FZulG) was established in 2020
and offers a 25% tax deduction of the elible costs, where the eligible costs are staff costs and 15%
of external contract research. To apply for tax credits, companies have to follow a 2-step-approach.
First: Applying for a technical certificate for the eligibility of projects. This certificate is automatically
transferred to the tax office. Second: Filling in the financial claim in ELSTER (German online tax
office system) and deduction of the company’s taxes.