Germany MOF Issues Guidance on R&D Allowance

The German Ministry of Finance July 5 issued guidance on the R&D research allowance under the Research Allowance Act (FZulG). The incentive is intended to stimulate research activities, particularly for small- and medium-sized enterprises (SMEs). The guidance includes that: 1) the allowance includes nonexempt unlimited and limited taxpayers with income from commercial, agriculture, and forestry sources, regardless of profit; 2) qualified taxpayers must implement a subsidized R&D project started after Jan. 1, 2020, that includes basic research, industrial research, or experimental development; 3) the allowance amount depends on eligible expenses, such as employee gross wages, capped at 60 percent for ...