Law cements tax incentives for industry research

Extra relief to help small businesses contracting out their research efforts

The Bundestag, the lower house of Germany’s government, has passed the research allowance law, which introduces R&D tax breaks for contractors.

One of the most important changes brought about through the law is that companies can benefit from tax incentives even if they do not undertake research themselves, but contract it out to other firms. For this, businesses now have the right to claim up to €500,000 in tax breaks.