The Application Process
The R&D tax incentive is available to a wide range of innovation projects. Notably, all tax-paying companies in Germany are eligible—regardless of industry or size.
That said, the two-step application process can seem complex at first. Learn more about the key steps involved and how Busuttil & Company can support you throughout the process.
The Two-Stage Application Process for the R&D Tax Credit
Applying for the R&D tax credit follows a two-step process: First, your R&D projects are certified, and then the tax credit is assessed by the tax office.
Step 1: Certification by the BSFZ
In the first step, you apply for certification of your research and development projects through the Certification Body for the Research Allowance (BSFZ).
The BSFZ evaluates whether your projects meet the requirements of the German Research Allowance Act (FZulG).
The certification process typically takes up to 12 weeks.
Once approved, the certification is automatically forwarded to your responsible tax office, which will then determine the amount of the tax credit.
Step 2: Assessment by the Tax Office
In the second step, you submit the application for the assessment of the R&D tax credit to your responsible tax office.
Following the successful certification of your projects, we support you in calculating the eligible R&D expenses per financial year and prepare all necessary documentation for your tax advisor and the tax authorities. At the same time, we implement efficient processes to reduce your administrative workload.
The tax credit is not paid out directly but is offset against your corporate or income tax. Any surplus will be refunded to you as a tax reimbursement.
Your Journey With Busuttil & Company
Throughout the entire process, you can remain fully focused on your core business. Our experts guide you every step of the way—preparing all applications on your behalf and ensuring a seamless, efficient process from start to finish.
Before submission, you will receive clear, comprehensive documentation of your project, providing full transparency at every stage.
Should any follow-up inquiries arise—typically requiring a response within two weeks—we handle all communication for you, so you can stay focused on what matters most.
Our Approach: Creating Value for You
The German R&D tax incentive framework is complex and requires a structured approach. That’s why we support you throughout the entire project lifecycle—from the initial consultation to final documentation—while proactively setting the right course at every stage. This ensures you can navigate the regulatory landscape with confidence and achieve the best possible outcome.
A Proven Approach to Maximizing Your Funding Potential
Our approach is built on deep experience and guided by two core principles: maximizing your funding potential while minimizing the risk of rejection by the Certification Body (BSFZ) or scrutiny during a tax audit. To achieve this, we follow a clearly defined, five-step methodology—ensuring a structured, efficient, and results-driven process.
Risks and Opportunities to Consider
An increasing number of companies are recognizing the R&D tax incentive as a key lever for transformation. To fully unlock its potential, however, it is essential to understand and manage the associated risks. In this video, Dr. Markus Busuttil highlights the critical factors and strategic considerations that he and his team focus on to ensure successful outcomes.