In which annex do I report the research allowance?

In research allowance application (ELSTER), via ELSTER, with the BSFZ certificate as a PDF.

Do I declare the research allowance in the trade tax return?

The allowance itself is not trade income. The commercial income is corrected outside the balance sheet; your tax adviser will name the line.

Where does it appear in the E-Bilanz under § 5b EStG?

Under other operating income, a separate label is optional.

Can I claim the research allowance retroactively?

Yes, four years from the end of the fiscal year (§ 12 FZulG in conjunction with §§ 169, 170 AO). The years from 2022 onwards are currently open.

What if the tax office rejects research allowance application (ELSTER)?

An appeal under § 347 AO, one month deadline.

Does it affect the solidarity surcharge?

Yes: offset against KSt or ESt before the SolZ (5.5 %).

Do I mention it in the VAT return?

No, not a supply or service for VAT purposes.

Where do you report the research allowance in the tax return?

With research allowance application (ELSTER), filed via ELSTER. The BSFZ certificate number is a mandatory field.

The research allowance in the tax return: research allowance application (ELSTER), assessment, offset

Q: When does research allowance application (ELSTER) have to be filed?

After the end of the fiscal year in which the R&D expenses were incurred (§ 5 FZulG), stating the BSFZ certificate number. At the latest by the end of the four-year assessment period (§ 169 AO).

A fixed order: research allowance application (ELSTER), assessment, then offset under § 10 FZulG. We give your tax advisor the figures.

Have research allowance application (ELSTER) checked for free Dossier

research allowance application (ELSTER): mandatory, ELSTER only
Offset against KSt or ESt, surplus paid out
Not operating income, therefore no trade income

Written by Max Nodes, Founder and Managing Director · 25 of 25 supported BSFZ applications certified (as of 09/2026) · Last updated: September 15, 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 483,000

Offset against tax− EUR 300,000

Paid outEUR 183,000

Paid into your account EUR 183,000 EUR 300,000 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).

Check your payout in a first consultation

Key facts in brief

The research allowance sits in research allowance application (ELSTER) to the corporate or income tax return, filed only via ELSTER. The tax office assesses it and offsets it against the tax owed, any surplus paid out (§ 10 FZulG). No BSFZ certificate, no assessment: certificate, research allowance application (ELSTER), assessment, offset. Even in loss years, the full allowance. Which field triggers which error is shown in the form filing guide.

The essentials of the tax return

Mandatory schedule: research allowance application (ELSTER), filed electronically via ELSTER
Order: Certificate, research allowance application (ELSTER), assessment, offset
Offset: At the next assessment (§ 10 FZulG)
Surplus: Paid out, even in loss years
Trade tax: No trade income, because there is no taxable profit (§ 7 GewStG)

What goes into research allowance application (ELSTER) and who fills it in?

The BSFZ certificate turns into numbers, filed with the tax return.

research allowance application (ELSTER) entries, example GmbH
Entry	Content	Example
Certificate number	from the notice	BSFZ-2026-00123
Certificate date	date issued	15 March 2026
Personnel costs	employer gross wages	EUR 800,000
Contract research	70 %, EEA	EUR 350,000
Overhead flat rate	20 %, from 2026	EUR 230,000
Assessment basis	max EUR 12 million	EUR 1,380,000
Funding rate	25 %, SMEs 35 %	35 %
Research allowance	to be assessed	EUR 483,000

Filed independently, speeds up the payout. More in our application guide.

before filing
BSFZ certificate
No certificate, no research allowance application (ELSTER) (§ 6 FZulG).
BSFZ
with filing
File research allowance application (ELSTER)
Via ELSTER, with certificate number and assessment basis (Bemessungsgrundlage).
Tax advisor
on assessment
Assessment
The tax office assesses the allowance.
Tax office
at assessment
Offset and payout
Offset against tax, surplus paid out (§ 10 FZulG).
Tax office

How is the research allowance offset against tax?

A tax credit: offset at the next assessment, the remainder paid out (§ 10 FZulG).

Offset by legal form
Legal form	Tax type	Offset
GmbH, UG	KSt 15 % + SolZ 5.5 %	full
Sole proprietor	ESt 14–45 %	full
Partnership	pro rata	at partner level

Loss years: No tax assessed, full allowance, no carry-forward consumed.

Example: EUR 800,000 loss, no tax. EUR 210,000 SME allowance paid out directly.

Does the research allowance have to appear in the trade tax return?

Only as a correction: the commercial income is removed again outside the balance sheet so that it does not end up in trade income.

Do not forget: the commercial income has to be corrected outside the balance sheet. Otherwise you tax the funding you just received.

Effect of the correction
Case	Trade tax on the allowance
Without the correction	14–17 % also due
With the correction	none

When does research allowance application (ELSTER) have to be filed?

After the end of the fiscal year, within the assessment period, only with the BSFZ certificate.

The research allowance application (ELSTER) – often called "Anlage FZ" in everyday usage, even though it is not an annex to the tax return – is filed after the end of the fiscal year in which the expenses were incurred (§ 5 FZulG). There is no filing deadline like the one for the tax return: it can be submitted via ELSTER together with the corporation or income tax return or separately from it. The prerequisite is the BSFZ certificate (§ 6 FZulG), whose number must be stated in it.

Deadlines around research allowance application (ELSTER)
Step	Deadline	Legal basis
Apply for the BSFZ certificate	at any time, also after the project has ended; the certificate is the base ruling for research allowance application (ELSTER)	§ 6 FZulG
File research allowance application (ELSTER)	at the earliest after the end of the fiscal year in which the expenses were incurred	§ 5 FZulG
Latest filing	until the end of the assessment period: four years, starting at the end of the calendar year in which the tax return was filed (§ 170 AO)	§ 169 AO

Each fiscal year needs its own research allowance application (ELSTER); several years can be filed one after the other.
The BSFZ certificate number is a mandatory field; without it the application is incomplete.
If research allowance application (ELSTER) is filed after the tax assessment, the tax office offsets the allowance with the next assessment (§ 10 FZulG).

Prepare research allowance application (ELSTER) before the deadline runs out

We give your tax advisor the assessment basis and certificate number, checked against § 10 FZulG.

Book a first consultation

Official sources

Read on

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

The research allowance in the tax return: research allowance application (ELSTER), assessment, offset

Key facts in brief

The essentials of the tax return

What goes into research allowance application (ELSTER) and who fills it in?

BSFZ certificate

File research allowance application (ELSTER)

Assessment

Offset and payout

How is research allowance application (ELSTER) submitted via ELSTER?