Tax allowance for research: Bavaria urgently calls for improvements!

Tax allowance for research: Bavaria urgently calls for improvements!

The vbw – Association of the Bavarian Economy e. V. has once again spoken out in favor of more attractive tax support for research. Loud vbw The research tax allowance introduced in Germany in 2019 is too low and bureaucratic. Managing Director Bertram Brossardt urgently calls for improvements in order not to fall behind in international competition. The coalition agreement provides for an increase and a simplification of the research allowance, but concrete measures are still missing.

Tax support for research in Germany is currently limited to 2.5 million euros; for small and medium-sized enterprises (SMEs) the limit is 3.5 million euros. In an international comparison, 14 European countries, including France, Austria and Spain, show that it is also possible to promote without such upper limits.

Demands of the vbw

In order to make the research landscape in Germany more attractive, the vbw is calling for a significant increase in the upper limit for annual research expenditure to a three-digit million amount. In addition, the maximum funding amount per project is to increase from 15 to at least 25 million euros. The promotion of pilot and demonstration systems is also considered necessary.

Another central concern of the vbw is the reduction of bureaucratic hurdles. A less bureaucratic funding process with digital processes and simpler verification requirements is required. The so-called once-only principle should be used here, in which data only has to be entered once. Brossardt also criticizes the fact that applications for funding are deleted if queries are not answered within two weeks.

International perspective

An international comparison shows that the need for action in Germany is great. How Even pride reports, tax support for research varies significantly between countries and Germany could run the risk of being left behind by more innovative markets. An attractive environment for research and development is crucial to ensure not only national but also international competitiveness.

The vbw therefore appeals to those responsible to promptly implement measures to improve the research allowance in order to secure the innovative strength and competitiveness in Germany in the long term.