Hungary has unveiled a new investment promotion system that will eliminate the need to create new jobs as a prerequisite for private sector investments to receive funds.
“In view of the fact that there is major global competition for international investment projects, a new investment promotion system will be coming into force in Hungary on October 1, the goal of which is to ensure that decisions on technology-orientated investment projects are also made in favour of Hungary,” said Minister of Foreign Affairs and Trade Péter Szijjártó.
“From now on, the government will also be able to provide funding towards investment projects that bring new processes, procedures and technologies into Hungary, and which increase the added value of existing workplaces,” he continued.
Additionally, the investment minimum required to be eligible for a development tax allowance has also been reduced and companies are no longer required to pre-pay a portion of their expected corporation taxes during the course of the tax year.
“The fact that double the money spent on R&D may be deducted from a company’s tax base, and that only half of the usual amount of social contributions must be paid with relation to employees involved in research and development, is also facilitating this,” the minister added.
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