Booking the R&D tax credit: SKR03 and SKR04 as a T-account
The German R&D tax credit is, procedurally, a tax refund (§ 12 FZulG). It is booked only once the assessment notice from the tax office arrives, as a receivable against income.
- Receivable to other operating income, upon the assessment notice
- SKR03: account 1450 to 2749. SKR04: account 1590 to 7695
- Not operating income: refund under § 10 FZulG
Written by Max Nodes, Founder and Managing Director · 25 of 25 supported BSFZ applications certified (as of 09/2026) · Last updated: · Law as of:
The allowance in your accounts
Figures and details
The account numbers and labels come from the chart of accounts, only the amount changes from case to case.
Key facts in brief
The R&D tax credit is booked as a receivable against the tax office once the assessment notice is issued: in SKR03 on account 1450 against account 2749, in SKR04 on account 1590 against account 7695. The BSFZ certificate alone is not enough, because the realization principle (§ 252 (1) No. 4 HGB) requires a sufficiently certain claim. For tax purposes the credit stays outside: § 10 FZulG pays any surplus out as an income or corporation tax refund, so the commercial income is removed again outside the balance sheet.
The essentials of the entry
How is the R&D tax credit booked?
Receivable to other operating income, upon the assessment notice: in SKR03 on account 1450 against account 2749, in SKR04 on account 1590 against account 7695.
SKR 03Tax-office assessment
1450 Other assets
EUR 150,0002749 Other operating income
EUR 150,000The receivable increases on the debit side; income is recognised on the credit side. The bank entry follows payment. The BSFZ certificate alone does not trigger this entry.
| Chart of accounts | Journal entry | Presentation | Timing of recognition |
|---|---|---|---|
| SKR03 | Account 1450 to account 2749 | P&L: other operating income (§ 275 HGB). Balance sheet: receivable under other assets | Upon the assessment notice, not the BSFZ certificate |
| SKR04 | Account 1590 to account 7695 | P&L: other operating income (§ 275 HGB). Balance sheet: receivable under other assets | Upon the assessment notice, not the BSFZ certificate |
SKR 04Tax-office assessment
1590 Other assets
EUR 150,0007695 Other operating income
EUR 150,000The receivable increases on the debit side; income is recognised on the credit side. The bank entry follows payment. The BSFZ certificate alone does not trigger this entry.
Which journal entry applies to the R&D tax credit?
The journal entry — receivable to other operating income, with the account numbers for SKR03 and SKR04 — is set out in the section above. Here: what to watch for in your chart of accounts and what happens upon payout.
- The account numbers follow your existing chart of accounts. If your bookkeeping uses SKR03, stay on SKR03; there is no need to switch because of the R&D tax credit.
- SKR03 numbers balance sheet and income accounts following the bookkeeping workflow, SKR04 follows the structure of the balance sheet and profit and loss statement. This changes nothing about the logic, only the account numbers.
- Even under a cash-basis income statement (Einnahmen-Überschuss-Rechnung) the R&D tax credit is not business income: it is credited against the assessed tax, and any excess is refunded (§ 10 (1) FZulG).
Our calculator estimates the expected credit in advance, so you know the booking amount before the notice arrives.
When is the R&D tax credit booked?
Only upon the assessment notice, not the BSFZ certificate or the filed application. The table below shows which procedural step actually triggers an entry.
| Event | Booking required? | Account SKR03/SKR04 |
|---|---|---|
| BSFZ application | No, no recognizable claim yet | not applicable |
| BSFZ certificate | No, the realization principle requires more (§ 252 (1) No. 4 HGB) | not applicable |
| Assessment notice | Yes: recognise the receivable and the income | 1450/2749 · 1590/7695 |
| Offset against income/corporate tax | Yes: derecognize the receivable against the tax liability | 1450/1590 against tax liability account |
| Payout of the surplus | Yes: book the bank receipt against the receivable | 1200/1450 · 1800/1590 |
If the credit has already been applied for but the notice has not arrived yet, a note in the appendix on the expected amount is enough. A receivable only arises once the notice is issued.
If the tax office reduces or rejects the requested credit, one month remains to appeal. Until the decision, book only the amount actually assessed, not the amount originally applied for.
If the notice for one fiscal year only arrives in the following year, the R&D tax credit is booked in the year of the notice, as prior-period income with a note disclosure.
What differs between HGB and IFRS for the R&D tax credit?
Both standards recognise the R&D tax credit through profit or loss. Timing and presentation differ.
| Criterion | HGB | IFRS (IAS 20) |
|---|---|---|
| Presentation | Other operating income (§ 275 HGB) | Gross or net method, an accounting policy choice |
| Timing | Upon the assessment notice | Once reasonable assurance exists, sometimes earlier |
| Netting | Not permitted, gross principle | Net method against R&D costs permitted |
| Deferred tax | Recognised under § 274 HGB on a timing difference | Assessed under IAS 12 |
Under IAS 20 the R&D tax credit counts as a government grant. Under the gross method it appears as a separate income item, under the net method it reduces the reported R&D costs. The chosen method applies consistently.
For a credit of EUR 150,000, the net method reduces the reported R&D costs directly by that amount instead of showing it as a separate income item. Under the gross method, income and R&D costs stay unchanged side by side in the P&L.
For material amounts, an explanation in the notes is advisable regardless of the standard: the nature of the credit, the method applied and the timing of recognition. Under IFRS this disclosure is required by IAS 20, and switching between the gross and net method needs a justification and a restatement of prior-year figures.
How does the R&D tax credit affect corporate and trade tax?
Offset and payout under § 10 FZulG are set out in the section "How does the R&D tax credit affect the tax balance sheet?" below. Under commercial law, the allowance still remains income that must be removed again outside the balance sheet, so trade income comes out right too.
- Off-balance-sheet correction: The commercial income is removed again outside the balance sheet, otherwise you tax the funding itself.
- Trade tax: Trade income builds on the profit determined that way (§ 7 GewStG). Neither the FZulG nor the Trade Tax Act contains its own provision on the research allowance.
In the E-Bilanz under § 5b EStG, the R&D tax credit appears under "Other operating income". A separate label is not strictly required but recommended for material amounts, in addition to the off-balance-sheet correction.
For corporations, the company itself bears the corporate tax. For partnerships and sole proprietorships, the R&D tax credit is offset against the personal income tax of the partners or the owner. The account assignment stays identical in every case.
Procedurally, § 12 FZulG treats the R&D tax credit like a tax refund: the provisions of the Fiscal Code (Abgabenordnung) on tax refunds apply accordingly, except for § 163 AO.
Which questions come up most often about booking the R&D tax credit?
How does the R&D tax credit affect the tax balance sheet?
The R&D tax credit does not reduce the eligible expenses and is not business income for income tax purposes: § 10 FZulG offsets it against the assessed income or corporate tax and pays out any surplus.
| Case | Effect |
|---|---|
| Profit year | Under § 10 FZulG the R&D tax credit reduces the assessed income or corporate tax for the year. If the tax liability is lower, the surplus is paid out. |
| Loss year | With no tax assessed, there is nothing to offset against: the full R&D tax credit is paid out as a surplus (§ 10 FZulG). |
| Tax group (Organschaft) | The R&D tax credit arises at the company that incurred the eligible expenses. Whether the offset applies at that company or at the parent depends on where the corporate tax is assessed — clarify the specific case with your tax adviser. |
Application and booking from a single source
We handle the BSFZ application and coordinate the booking with your tax advisor, from the certificate to the assessment notice.
Book a first consultation- Research Allowance Act (FZulG). Statutory text, §§ 3, 10, 12
- Trade Tax Act (GewStG), § 7. Trade income builds on the taxable profit
- German Commercial Code (HGB), §§ 252, 274, 275. Accounting principles
- BSFZ. Certification Office for the Research Allowance
- Income Tax Act (EStG). Statutory text (German)
- Fiscal Code (AO). Assessment period, appeal, interest (German)
Read on
- Research allowance (FZulG): the guideRequirements, funding amount and the BSFZ application at a glance.
- Applying for the research allowanceBSFZ application and research allowance application (ELSTER) step by step.
- Research allowance calculatorCalculate the assessment basis (Bemessungsgrundlage) and allowance from your personnel costs.
- Research allowance and corporate taxHow the offset under § 10 FZulG works in practice.
- Research allowance in the tax returnresearch allowance application (ELSTER) and the details the tax office requires.
- Funding amount of the research allowanceAssessment basis, funding rate and the EUR 12 million cap.
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