A new incentive - cash grant for large enterprises instead of tax incentives.
According to government plans, a new VIP Cash Grant program may start from early 2024, specifically targeting businesses adversely affected by the introduction of the global minimum tax.
Under the plans, these businesses could request cash grant for their planned investments instead of development tax allowance. Payments for this grant could be made over the following 10 years following the implementation of the investment, provided that the company's tax base remains positive.
Eligible for this incentive are enterprises in Hungary (excluding Budapest) committing to investments of at least €3 / €5 / €10 million, depending on the location of the investment.
The maximum level of the aid matches the maximum regional aid intensity available at the investment location, potentially reaching up to 60%. However, the actual level of aid will depend on individual decisions by the donor authority and also on the company's planned and actual pre-tax results.
According to the plans, there will be no requirement for additional collateral for the support, so there will be no need for the usual bank guarantees, surety agreements, or property mortgages. Simply providing authorization letters to the company's bank account may suffice, which creates particularly favorable conditions for businesses.
We are ready to assist you and your company in applying for this cash grant, as well as throughout the entire process.
If you have any questions regarding this program, please feel free to contact our team.
