Forschungszulage: Fund & Bill External R&D Right

Why This Matters

In practice, external services fail not because of a lack of innovation but due to incorrect classification (contract research vs. service), missing evidence and inaccurate billing. If you set things up correctly from the start, the Forschungszulage becomes a predictable, non-repayable financing component for innovation – even when part of the implementation is done externally.

What Counts as an External Service – and What Does Not?

External services that directly serve the innovation objective (technical uncertainty, systematic development, generation of new knowledge) are eligible, e.g.:

• Software development including AI implementation (where novel/uncertain technical solutions are involved)
• Design, simulations, technical calculations
• Laboratory analyses, material tests, test bench runs (innovation-related, not purely serial/routine testing)
• Prototype construction by third parties (when part of experimental development)

Typically not eligible (or at least highly scrutinised): routine services without an innovation link such as marketing, standard quality assurance, pure project management, general consulting, or "by-the-book implementation" without technical uncertainty.

If you are unsure, the following often helps as a reference: Example projects and What to do if rejected?.

Contract Research vs. "External Support": Correct Classification Is Key

For external costs to be correctly accounted for, you must assign them clearly:

• Contract research typically applies when a legally independent contractor provides an R&D/innovation service for you and the rights to the results rest economically with you.
• External support within your own project (e.g. tests, simulations, sub-modules) is often also eligible if it is clearly project-related and the project meets the criteria.

Practical tip: In contracts and service descriptions, do not write "consulting/support" – instead specify the technical objective, the uncertainty and the work packages (what is being developed, what is being tested, which hypothesis/parameters, which iterations).

How Much Funding Is Available for External Service Providers (Since 28.03.2024)?

Since 28.03.2024: 70% of contract costs are claimable in the assessment base.

Important, as this is often misunderstood:

• It is not 70% funding,
• but rather a 70% claimable cost basis,
• to which the rate is then applied: 35% (SMEs) or 25% (larger companies).

Mini Example (SME)

• Invoice from external partner: €200,000
• Claimable (70%): €140,000
• Forschungszulage (35%): €49,000 (subject to tax assessment/credit)

EU/EEA Rule: Where May Your Service Provider Be Based?

For contract research, the key rule is: the contractor must be based in the EU or EEA. External services from partners outside this area (e.g. USA, UK, India) are typically not claimable in this category.

From 01.01.2026: What Changes for Billing (Relevant for Many External Invoices)?

From 01.01.2026 the Forschungszulage becomes even more attractive – especially if you have larger budgets (including for external partners):

• Assessment base: €12 million p.a.

  → mathematically up to €4.2 million allowance per year at 35% (SMEs).

• 20% overhead flat rate (only for projects starting from 2026)

  → can increase the assessment base without you having to document every individual overhead item separately.

• Own work: €100 hourly rate (for activities from 2026)

  → relevant if you coordinate/develop internally and supplement externally.

If you want to know exactly which cut-off dates (expenditure vs. project start) apply to your situation: start with a preliminary review via zeitmaker.com.

Billing and Evidence: How External Services Must Be Set Up to Be "Audit-Ready"

(audit-ready)

To prevent external service providers from triggering queries or reductions in the Forschungszulage, the following has proven effective:

• Contract/Service description
  • technical objective (innovation goal)
  • specific work packages/deliverables
  • provision regarding rights to results/usage rights
  • service period and project designation
• Invoices
  • clear project reference (name/number)
  • service period, service content (not just "development", but e.g. "Simulation Iteration X", "Prototype Trial Y")
  • unambiguous assignment to work packages
• Technical evidence
  • test protocols, laboratory reports, measurement series
  • technical drawings, specifications
  • code documentation, architecture notes, tickets/commits (project-specific)
• EU/EEA proof of domicile (relevant for contract research)

Internal help: at zeitmaker.com you will find relevant guides and support for Forschungszulage documentation as well as for assigning eligible costs.

Official Authorities (for Orientation and Application)

• Bescheinigungsstelle Forschungszulage (BSFZ) for the project certificate: bescheinigung-forschungszulage.de
• Legal basis / legislative announcements: recht.bund.de

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