Research allowance and tax advisors: the division of labor that works
research allowance application (ELSTER) and offsetting against the tax liability stay with your tax firm (§ 10 FZulG). The BSFZ certificate needs a technical project description under its own criteria, a different discipline. NOVARIS handles exactly this stage and hands your tax firm a finished research allowance application (ELSTER) at the end.
- 25 of 25 supported BSFZ applications approved (as of 09/2026)
- Success-based, 70 % due only after payout
- Finished figures for your tax firm
Written by Max Nodes, Founder and Managing Director · 25 of 25 supported BSFZ applications certified (as of 09/2026) · Last updated: · Law as of:
Technical evidence meets tax practice
Figures and details
Key facts in brief
The research allowance needs two separate steps at two authorities. The BSFZ certifies the project as research and development, checking novelty, technical risk and a systematic approach (§ 2 FZulG). Then your tax firm files research allowance application (ELSTER) with the tax return, and the tax office offsets the allowance against the assessed tax, paying out any surplus (§ 10 FZulG). NOVARIS handles the BSFZ stage: scoping the project, writing the project description, preparing the hours and answering BSFZ queries. At the end your tax firm receives a research allowance application (ELSTER) it can file directly.
Who at NOVARIS handles the BSFZ stage for you and your tax firm
A specialist who knows BSFZ practice from the largest application practice in Germany, not just from the statute.
Max Nodes
Founder and Managing Director
Leadership role at the largest provider
Before founding NOVARIS, Max Nodes held a leadership role at the largest provider of research allowance consulting in Germany. There he wrote more than 90 BSFZ applications and supported 50 companies through to approval, each in coordination with their tax firms.
More funding than initially calculated
The companies he supported received on average more research allowance than they had initially calculated themselves. The difference comes from how projects are scoped and how hours are prepared, not from the wording of the application.
Since 2026, with a finished research allowance application (ELSTER) for your firm
NOVARIS Consulting was founded in early 2026 and does nothing but research allowance. We handle the BSFZ stage completely and hand your tax firm the eligible expenses fully prepared. Track record: 25 of 25 supported BSFZ applications approved (as of 09/2026).
Who does what: NOVARIS or your tax firm?
There is exactly one handover: NOVARIS delivers the finished figures and the certificate number, your tax firm enters them into research allowance application (ELSTER) and the tax return. Offsetting against the tax liability runs through § 10 FZulG.
Scoping the project and writing the description
NOVARIS scopes the project apart from routine work and writes the technical project description under the BSFZ criteria (§ 2 FZulG).
NOVARISBuilding the time records
NOVARIS prepares the hours per project from payroll and project data.
NOVARISFiling the BSFZ application
NOVARIS files the application electronically in the BSFZ portal.
NOVARISAnswering BSFZ queries
NOVARIS answers the certification office's queries within the deadline.
NOVARISHandover of the finished figures
NOVARIS delivers the eligible expenses per project and the certificate number to your tax firm.
NOVARIS and tax firmCompleting and filing research allowance application (ELSTER)
Your tax firm enters the figures into research allowance application (ELSTER) and files it electronically with the tax return (§ 5 FZulG).
Tax firmCorporate or income tax return
Your tax firm integrates research allowance application (ELSTER) into the regular tax return.
Tax firmOffsetting against the tax liability
The tax office offsets the allowance against the assessed tax; any surplus is paid out (§ 10 FZulG).
Tax office
| Document | Content | Timing |
|---|---|---|
| BSFZ certificate number | Proof that the certificate exists (§ 6 FZulG) | With the certificate |
| Eligible expenses per project | Personnel costs allocated to the certified projects | After the certificate |
| Time records per project | Prepared from payroll and project data | After the certificate |
Who handles which task: tax advisor, specialist or your company?
Six tasks, three parties. The table shows where NOVARIS steps in and where your tax firm stays.
| Task | Tax advisor | Specialist | Company |
|---|---|---|---|
| Scoping the project | no Rarely knows the BSFZ criteria | yes Scopes it apart from routine work | partly Knows the technology, not the BSFZ language |
| Writing the project description | no Not their field | yes Writes and files it | partly Provides the technical facts |
| Preparing time records | no Accounting view, not project-based | yes Prepares hours per project | partly Provides payroll and access |
| Filing the BSFZ application | no Not part of tax practice | yes Files and manages it to certification | no Approves the texts |
| Filing research allowance application (ELSTER) | yes Core business, files via ELSTER | partly Delivers the eligible expenses | no No task here |
| Answering BSFZ queries | no Rarely trained for it | yes Answers within the deadline | no Involved only if needed |
How the handover between NOVARIS and your tax firm actually works is shown in the section above. What NOVARIS's consulting covers is explained on FZulG consulting.
In what order do the BSFZ application and research allowance application (ELSTER) run?
Six steps, two authorities. The research allowance application (ELSTER) follows only once the BSFZ certificate exists.
First consultation and screening
We check with your developers which projects are eligible under § 2 FZulG.
NOVARIS with your teamProject description and time records
We write the technical project description and prepare the hours per project from payroll and project data.
NOVARISBSFZ application
Filed electronically in the BSFZ portal. We answer certification office queries within the deadline.
NOVARIS, BSFZCertificate
The BSFZ certifies the project as research and development, a foundational ruling for the tax office (§ 6 FZulG).
BSFZresearch allowance application (ELSTER)
We deliver the eligible expenses, your tax firm completes research allowance application (ELSTER) and files it electronically with the tax return (§ 5 FZulG).
Tax firmAssessment and payout
The tax office offsets the allowance against the assessed tax. Any surplus is paid out (§ 10 FZulG).
Tax office
Both stages can be prepared in parallel: while the BSFZ reviews, we align the research allowance application (ELSTER) figures with your tax firm.
Why is the tax firm alone often not enough for the BSFZ stage?
The BSFZ reads a project description, not a tax return. Three points decide between approval and a query.
- Different criteria: the BSFZ assesses novelty, technical risk and a systematic approach (§ 2 FZulG), not the assessment basis (Bemessungsgrundlage).
- Different language: a result-oriented description ("we developed product X") does not answer where the project could have failed.
- Consistency requirement: the projects named in the certificate must be reflected in research allowance application (ELSTER), and personnel costs must be allocated to those projects.
The most common rejection reasons are covered on BSFZ rejection and appeal.
How do you know you need an FZulG specialist alongside your tax advisor?
Six signs from our consulting practice. The more that apply, the more the first consultation is worth it.
- Your tax advisor has never filed a BSFZ application.
- A BSFZ certificate was rejected or only partially recognized.
- You are unsure which projects are eligible.
- You want to file retroactively for open financial years.
- You have contract research that needs to be correctly allocated.
- You want to improve your time tracking for the research allowance.
More on open years is on retroactive application, on allocating outsourced work on contract research.
Frequently asked questions about the research allowance and tax advisors
What does a tax firm gain from working with NOVARIS?
The firm keeps the mandate, without having to learn BSFZ evaluation practice or take on liability for the technical project description.
| Criterion | Tax firm alone | Together with NOVARIS |
|---|---|---|
| Learning the BSFZ evaluation practice | no Must learn novelty, technical risk and a systematic approach under its own criteria (§ 2 FZulG) | yes Not needed, NOVARIS assesses the projects |
| Liability for the technical project description | no Carries the substantive responsibility for a field outside its own | yes Sits with NOVARIS, the tax firm stays on the tax side |
| Client mandate and relationship | yes Stays fully with the tax firm | yes Stays fully with the tax firm, NOVARIS only represents the project to the BSFZ |
| Answering BSFZ queries | no Deadline-bound, rarely trained for it | yes NOVARIS answers within the deadline |
| Time spent alongside daily practice | partly Full handling of the BSFZ stage on top of core business | yes Only research allowance application (ELSTER), with finished figures from NOVARIS |
The BSFZ stage needs a technical assessment under its own criteria, not tax expertise. When your tax firm works with NOVARIS on this, the mandate stays fully with the firm; we only deliver the finished figures for research allowance application (ELSTER). Track record: 25 of 25 supported BSFZ applications approved (as of 09/2026).
When is NOVARIS not the right choice alongside your tax advisor?
Three cases in which we advise against it in the first consultation.
Your tax advisor already files the BSFZ application successfully
If your projects are already certified without cuts or rejections, you do not need a second applicant.
Pure contract research without your own development
If the customer defines the result and the approach, your own technical risk is missing. The BSFZ rejects such projects, more on contract research.
Only a second opinion on the tax return is wanted
If it is only about research allowance application (ELSTER) or offsetting against the tax liability, that is your tax firm's task. We handle the BSFZ stage, not the tax return.
Send us the project name, we coordinate with your tax firm.
In the first consultation we check whether your project is eligible and clarify the handover to your tax firm. Free of charge, success-based.
Book a first consultationRead on
- FZulG consultingWhat NOVARIS's consulting covers and how it is paid
- Filing with the tax officeHow the research allowance application reaches the tax return
- Applying for the research allowanceBSFZ application and research allowance application (ELSTER) step by step
- Time trackingTime records the BSFZ and tax office accept
- Booking the research allowanceOffsetting and booking the allowance for your tax firm
- Advisor registerProviders in a register, no ranking
- Filing yourselfBoth stages in-house, with an effort estimate
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