Investment related tax planning should; however, be started as early as possible; as certain allowances and incentives are only accessible with prior notification/claim. The development tax allowance for example is a tax credit that may reduce the corporate income tax payable by maximum 80 percent. The allowance must be used in the tax year or the following of the investment’s capitalization, plus the subsequent nine tax years, but at the very most within 14 tax years following the request for such. Eligibility for the development tax allowance is subject to the size and location of the company, its value depends on the magnitude of the investment. It is also necessary to notify the authorities when the investment is concluded. The utilisation of the development tax incentive entails strict documentation and data supply requirements and it can only be utilised if the facts presented in the declaration/request are unchanged.
Back to the tenders it is advisable to utilise the cash subsidy offered by the Operative Programmes, because aid intensities will decrease in the future due to the development of the Hungarian regions, and non-refundable subsidies will be more and more replaced by the less favourable refundable support.
The aim of VEKOP 2.1.1-15 tenders is to boost the research-development and innovation activities of Hungarian businesses by supporting those activities that contain significant intellectual added value and result in the development of new, marketable products, services, technologies and their prototypes. Within the subsidy scheme, the research-development and innovation activities performed by enterprises independently or jointly can be supported. The budget allocated to the OP is HUF 5 billion. The number of approved applications is expected to be between 10 and 100, applications can be submitted from 29 February 2016 until 28 February 2018.
The call named VEKOP-2.3.3-15 – Reinforcement of the research infrastructure – internationalisation, networking aims to support exclusively those research tools and infrastructure purchase, development or upgrading that ensure Hungarian participation in international research infrastructure. It also provides contribution to the programmes supported under Horizon 2020, thus promoting international and Hungarian networking and research cooperation to achieve and maintain the international competitiveness of Hungarian knowledge centres. The budget allocated is HUF 2 billion. The number of approved applications is expected to be between 4 and 40, applications can be submitted from 11 May 2016 until 11 May 2018.
The aim of the call for proposals GINOP 1.2.5-15 is to promote the development of logistics service centres. It is targeted at logistics enterprises that have added value potentials. As a result, the existing business infrastructure capacities of logistics service centres can be further increased, thereby raising the quality of their logistics services and broadening their scope of services. Such developments have a direct effect on the service quality of the supply and product distribution networks servicing small and medium-sized enterprises and on their competitiveness. The budget allocated is HUF 4 billion. The number of approved applications is expected to be between 50-90, applications can be submitted from 29 February 2016 until 28 February 2018.
If you are interested in the above-outlined possibilities for subsidy through tenders, we are pleased to be at your service together with our cooperating partner. If you are interested in the development tax allowances or other tax incentives, you can directly contact our colleagues at LeitnerLeitner (office@leitnerleitner.hu) for information, or you can read more in our Hungarian blog, "Guidlines to taxation in Hungary" chapter and our website.
