Forschungszulage for Corporate Groups and R&D Collaborations: What Startups Should Know Before Applying

Dr. Anne Küsters, September 21st, 2026  

With Germany’s R&D tax credit, the Forschungszulage, it is not only what you develop that matters. In more complex company structures, it also matters who develops it, where the costs arise, and how the companies involved are connected.

This becomes particularly relevant in two situations: when a company is part of a larger corporate group, or when several organizations work together on the same R&D project.

Both can affect the R&D tax credit, but in very different ways.

Ownership: It Is Not the Stake That Matters, but Control

A company can have investors, minority shareholders, or strategic investors without this automatically affecting its R&D tax credit.

The structure becomes relevant when companies qualify as affiliated companies under the German R&D Tax Credit Act.

Section 3(6) FZulG requires a controlling influence within the meaning of Section 290 of the German Commercial Code. Typical examples are parent-subsidiary structures in which one company holds a majority of the voting rights or can otherwise exercise control over another company.

Why does this matter?

Since 2026, the maximum assessment base for the German R&D tax credit has been €12 million per calendar year. For affiliated companies, however, this limit applies to the group as a whole, not to each individual company.

Take an industrial group with two R&D-intensive subsidiaries. Subsidiary A has an eligible assessment base of €8 million, while Subsidiary B has another €6 million. Even though both companies run separate R&D projects, they cannot automatically claim a combined €14 million assessment base. The group shares the €12 million cap.

This is why larger corporate groups should not plan their R&D tax credit independently at subsidiary level. The relevant view is the group as a whole.

If only one company applies and the shared limit is not otherwise used, the group structure does not automatically reduce the available funding. There is still additional documentation involved: German taxable affiliated companies must be disclosed in the BSFZ application even if they do not submit an application themselves.

If several affiliated companies apply for the R&D tax credit and together approach the maximum assessment base, the allocation becomes financially relevant. Section 3(6) FZulG even accounts for subsequent changes: if the tax credit assessment of one affiliated company changes and this affects how the maximum amount is allocated, assessments of other group companies may also be adjusted.

In other words: for affiliated companies, the funding cap follows the group, not the individual project.

What About a 26% Shareholding?

This is where an important distinction comes in. A shareholding of, for example, 26% does not automatically make two companies affiliated companies under Section 3(6) FZulG. The shared €12 million cap requires a controlling influence. That same shareholding can, however, become relevant somewhere else: when determining SME status.

Under the European SME definition, companies with ownership stakes between 25% and 50% may qualify as partner enterprises. In that case, metrics such as employee headcount, revenue, and balance sheet total may need to be included proportionally in the SME assessment. This matters because SME status can determine whether a company qualifies for the increased R&D tax credit rate.

Certain venture capital firms, business angels, and institutional investors are subject to specific exemptions. The distinction is therefore simple but important: 25% can matter for SME status. The shared R&D tax credit cap, however, depends on control. These two rules should not be confused.

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R&D Collaborations: One Project Does Not Mean One Application

The second scenario starts not with the cap table, but with the R&D project itself. A startup develops a new technology together with an industrial partner and a university. All three are working toward the same outcome, but each solves a different part of the technical problem. This is precisely what the German R&D tax credit framework recognizes as a collaborative R&D project.

The core principle is straightforward: the overall research objective can be shared, but each partner’s R&D contribution must still be clearly attributable. For collaborative projects, the BSFZ therefore requires the overarching objective of the collaboration to be described. Each company then focuses its own application on its individual sub-project and technical contribution. If several collaboration partners want to benefit from the R&D tax credit, each eligible partner submits its own application for certification.

The funding logic is therefore clear: One shared R&D objective. Separate work packages. Separate costs. Separate applications. If the companies are not affiliated with one another, each eligible collaboration partner generally has access to its own assessment base. Section 3(7) FZulG explicitly distinguishes these cases. Only if the collaboration partners are also affiliated companies does the shared group cap apply.

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Collaboration or Contract R&D? Same Technology, Different Funding Logic

A particularly important distinction is the one between a collaboration and contract R&D. In a collaboration, several partners independently contribute to a shared R&D objective. In contract R&D, one company instead commissions a defined R&D service from an external partner in return for payment. That may sound like a small structural difference. For the R&D tax credit, it is not.

In a collaborative project, each eligible partner claims its own eligible R&D expenditure. In contract R&D, the client and contractor are treated separately. The BSFZ therefore requires specific information on the contractor, the activities performed, and the relevant contract costs. This is why the structure should be clear before the application is filed.

If the contract, work packages, and actual working relationship show a commissioned R&D service, the application should not try to turn it into a collaboration, and vice versa. The best structure is the one that reflects how the project actually works.

More on this topic: Is My Project Eligible? German R&D Tax Credit for Software, AI, Hardware & Product Development

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Start With the Company Structure. Then Map the R&D Project.

Ownership structures and collaborations ultimately operate on two different levels.

The first is the company level: Is there a controlling influence? Is the company part of a corporate group? Does a shared assessment base apply? And could the ownership structure affect SME status?

The second is the project level: Who develops what? Who carries which technical risks? Where do the costs arise? Is the project conducted internally, as part of a collaboration, or through contract R&D?

Once these two levels are separated, even complex R&D structures become significantly easier to map. The BSFZ first assesses the technical eligibility of the R&D project. In the second step, the actual R&D tax credit is claimed from the relevant tax authority based on the eligible expenses incurred. For startups and industrial companies, the practical takeaway is simple: the right structure should not be invented when the application form is opened. It should follow the actual company and project structure from the beginning.

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Assess Your R&D Project with DnA

You know your product. Your team knows the technical hurdles. The next step is turning that work into a clear assessment of its funding potential.

At DnA Ventures, we combine the perspective of an early-stage investor with deep industrial and technology expertise. Our focus is Industrial and Deep Tech, and the companies building new technical solutions.

For the German R&D tax credit, we support companies from the initial eligibility assessment through preparation and drafting of the application and into the subsequent funding process.

The goal is not to dress up your project in funding terminology. It is to make the technical substance of what you are building clear, precise, and defensible.

Tell us what you are developing, which technical questions remain unresolved, and how your team is approaching them. Together, we assess the potential R&D tax credit opportunity and the next steps.

Check your project’s eligibility →

About DnA Ventures

Built from industry, for industry: DnA Ventures combines industrial and startup experience with venture capital and non-dilutive R&D funding. For an initial R&D tax credit eligibility assessment, contact Anna Saari or Maite Pazmino.

Disclaimer: This article provides general information and does not constitute tax or legal advice. Actual eligibility and the amount of the R&D tax credit depend on the individual circumstances. Legal status: September 21st, 2026.

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