How and when is the R&D tax credit paid out?

The tax office offsets the R&D tax credit against income or corporate tax at the next assessment. Any surplus is refunded, and in loss years the entire credit.

R&D tax credit payout: offset or refund

Q: How long does the R&D tax credit payout take?

After the BSFZ certificate the tax office assesses within 4 to 12 weeks and offsets the allowance. The BSFZ review itself takes up to 3 months before that. For retroactive applications, the assessment can take up to 6 months.

Q: Is the credit applied to tax advance payments?

After assessment you can request a reduction of advance payments if the relevant tax return has not yet been filed and the advance payments for the latest period not yet assessed can still be adjusted (§ 10 (2a) FZulG). The reduction cannot take the advance payments below zero.

Q: What should I do if the tax office does not respond?

An appeal under § 347 AO is admissible at any time. If the tax office stays inactive for 6 months without sufficient reason, an action for failure to act under § 46 FGO is also admissible. A phone call to the case worker is worth trying first.

Q: To which account is the R&D tax credit paid out?

To the business account on file with the tax office, the same one used for tax refunds. A different account must be registered before the assessment via ELSTER or an official form. For a GmbH or UG, the credit goes only to the company account, never to shareholders privately.

Q: What happens to a paid-out credit during a tax audit?

The assessment is issued subject to subsequent review (§ 164 AO). If expenditures are later disallowed, the over-paid credit must be repaid with interest (§ 233a AO). The BSFZ certificate itself remains binding; the R&D quality is not re-examined.

Q: Can the R&D tax credit be garnished or assigned?

Yes, the payout claim is garnishable and assignable as a tax refund claim under § 46 AO. An assignment is reported to the tax office in writing and takes effect only after assessment. In insolvency, the credit falls into the insolvency estate if the claim arose before proceedings opened.

The R&D tax credit is offset against your next tax assessment. If it exceeds the tax liability, the tax office pays out the rest, even without profit.

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Offset against income or corporate tax (§ 10 FZulG)
Surplus is paid out, even in loss years
Trade-tax neutral, no add-back

Written by Max Nodes, Founder and Managing Director · 25 of 25 supported BSFZ applications certified (as of 09/2026) · Last updated: September 22, 2026 · Law as of: September 2026

Offset and payout§ 10 FZulG

Research allowance assessed € Amount from the tax office’s research allowance notice Tax assessed € Income or corporation tax of the next first assessment

Research allowanceEUR 200,000

Offset against tax− EUR 120,000

Paid outEUR 80,000

Paid into your account EUR 80,000 EUR 120,000 of it offset against tax

The allowance is first offset against the tax assessed. Whatever remains is paid out by the tax office (§ 10 FZulG).

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Key facts in brief

Under the next tax assessment, the R&D tax credit is offset against income or corporate tax (§ 10 FZulG). If the credit exceeds the tax liability, the tax office pays out the surplus as a tax refund. Companies with a loss therefore receive the full credit as a payout, with no tax liability to offset against. For partnerships, the credit is offset proportionally under the profit-sharing ratio and assessed separately and uniformly. More questions are answered in the Forschungszulage FAQ.

The essentials of the payout

Mechanism: Offset against the tax liability at the next assessment, surplus is paid out (§ 10 FZulG)
Loss years: Full credit paid out, regardless of tax liability
Duration: 4 to 12 weeks from assessment to credit
Trade tax: Not business income, no add-back
Reservation: Assessment issued subject to subsequent review (§ 164 AO)
If delayed: Appeal under § 347 AO at any time; action for failure to act after 6 months without a notice (§ 46 FGO)

How does the tax office offset the credit against tax?

§ 10 FZulG fixes the order: first offset against the assessed tax, then payout of the rest.

§ 10 FZulG sets the order: the R&D tax credit is first offset against the income or corporate tax due at the next assessment. The part exceeding the tax liability is refunded. The provisions of the Fiscal Code (Abgabenordnung) on tax refunds apply accordingly, except for § 163 AO (§ 12 FZulG).

Profit year: the credit is offset up to the amount of the tax liability, the rest is paid out.
Loss year: with no tax liability there is nothing to offset, the entire credit is paid out.
Partnerships: the offset is proportional under the profit-sharing ratio, assessed separately and uniformly.

No profit, no hurdle: start-ups and growing companies with no tax liability receive the R&D tax credit in full as a cash payout to the company account.

What stations does the payout go through before it lands in the account?

Four stations separate the BSFZ application from the credit in your account: certificate, assessment, offset, payout.

The route from the notice to the payout

Offset and payout sit in the same tax notice, separated only in the arithmetic.

Typical timelines to payout
Process step	Duration	Note
BSFZ certificate	up to 3 months	With a complete application
Tax assessment, current year	4–12 weeks	Depends on the tax office
Tax assessment, retroactive	up to 6 months	Longer processing for retroactive applications
Total duration to payout	3 to 6 months	From the BSFZ application to offset or payout

What tax specifics apply to the payout?

The R&D tax credit stays outside two tax types and leaves loss carryforwards untouched.

Tax treatment of the R&D tax credit
Aspect	Effect
Trade tax	Not business income, no add-back to trade income
VAT	Not consideration for a supply, not subject to VAT
Loss carryforward	Remains fully intact, independent of the credit
Tax advance payments	Can be offset against advance payments after assessment

In short: the R&D tax credit reduces the tax burden, triggers neither trade tax nor VAT, and does not change loss carryforwards. More on the interaction with corporate tax is in our guide to corporate tax.

Which questions come up most often about the payout?

How long does the R&D tax credit payout take?+

After the BSFZ certificate the tax office assesses within 4 to 12 weeks and offsets the allowance. The BSFZ review itself takes up to 3 months before that. For retroactive applications, the assessment can take up to 6 months.

Do I receive the credit even without profit?+

Yes. With no tax liability there is nothing to offset, so the R&D tax credit is paid out in full. That applies whether the missing tax liability comes from a loss or from loss carryforwards.

Is the credit applied to tax advance payments?+

After assessment you can request a reduction of advance payments if the relevant tax return has not yet been filed and the advance payments for the latest period not yet assessed can still be adjusted (§ 10 (2a) FZulG). The reduction cannot take the advance payments below zero.

What should I do if the tax office does not respond?+

An appeal under § 347 AO is admissible at any time. If the tax office stays inactive for 6 months without sufficient reason, an action for failure to act under § 46 FGO is also admissible. A phone call to the case worker is worth trying first.

To which account is the R&D tax credit paid out?+

To the business account on file with the tax office, the same one used for tax refunds. A different account must be registered before the assessment via ELSTER or an official form. For a GmbH or UG, the credit goes only to the company account, never to shareholders privately.

What happens to a paid-out credit during a tax audit?+

The assessment is issued subject to subsequent review (§ 164 AO). If expenditures are later disallowed, the over-paid credit must be repaid with interest (§ 233a AO). The BSFZ certificate itself remains binding; the R&D quality is not re-examined.

Can the R&D tax credit be garnished or assigned?+

Yes, the payout claim is garnishable and assignable as a tax refund claim under § 46 AO. An assignment is reported to the tax office in writing and takes effect only after assessment. In insolvency, the credit falls into the insolvency estate if the claim arose before proceedings opened.

Secure the payout without losing months

In the first consultation we check your notice, the assessment basis (Bemessungsgrundlage) and the timing of the offset. Success-based, no upfront costs.

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Official sources

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Max Nodes

Founder and Managing Director of NOVARIS Consulting. Specialised in the German R&D tax credit (FZulG) since 2021; 25 of 25 accompanied BSFZ applications approved (as of 09/2026). Max Nodes