New SME opportunities
R&D Tax Credit
Take advantage of the opportunities offered by the new tax incentives—IBSH will assist you with the administration!
I'M INTERESTED IN THE OFFERWhat you should know about tax incentives
General information
As of January 1, 2024, a new type of research and development (R&D) tax credit is available under the Hungarian Corporate Income Tax Act (Act LXXXI of 1996, Section 22/G). The aim of this new scheme is to provide a predictable, refundable, and direct financial benefit to companies that carry out genuine R&D activities.
This tax credit allows a reduction of corporate income tax based on eligible R&D costs and can be used to offset up to 100% of the payable corporate tax. It takes priority over all other tax credits and is not subject to the typical 70% or 80% utilization limits.
Structure and Amount of the Tax Credit
- It is applied as a direct tax credit (not a tax base reduction). vehető igénybe.
- Amount: 10% of eligible R&D costs.
- Utilization period: In the tax year in which the cost is incurred, and in the three subsequent tax years.
- Duration: The scheme may be applied for a period of five consecutive tax years, and the decision can only be changed from the sixth tax year onward.
- The credit can be used to reduce up to 100% of the corporate income tax liability, taking priority over other tax credits.
- If the tax credit is not fully utilized due to insufficient tax liability, the unused portion may be refunded by the tax authority — effectively turning it into a non-repayable grant.
ELIGIBILITY CRITERIA
The tax credit is available to any company that:
✅ is registered in Hungary,
✅Conducts R&D activities on its own behalf and at its own risk,
✅ tevékenysége megfelel az alapkutatás, alkalmazott kutatás vagy kísérleti fejlesztés kritériumainak,
✅ Starts the R&D project on or after January 1, 2024.
It is strongly recommended to request a professional qualification (pre-assessment) of the R&D project from the National Research, Development and Innovation Office (NKFIH), especially for high-value or complex projects.
Eligible Costs:
The tax credit applies to the following costs, provided they are directly related to the R&D project:
✅ Personnel expenses
- Proportional to the time employees spend working on the R&D project (including wages, social contributions, and project-specific allowances such as sick pay, commuting costs, or meal benefits).
✅ Depreciation of tangible assets
- Based on the proportionate use of equipment and tools necessary for the implementation of the R&D project.
✅ Operating and overhead costs
- Includes energy consumption, raw materials, rental fees, etc., if directly linked to the R&D activity.
✅ Costs related to intellectual property (IP)
- Fees associated with patents or other IP rights used in the project.
✅ Procured services
Services essential for the R&D project may be included:
- From unrelated parties: up to 20% of the total eligible project cost.
- From related parties: up to 10%, based on market rates.
A written declaration from the service provider is required, confirming that the service has not been supported through any form of state aid (e.g. grants or other tax incentives).
Application Process
- Identify R&D activities at the project level.
- Prepare technical and financial documentation for the project.
- (Optional) Request pre-qualification from the NKFIH.
- Apply the tax credit when submitting the corporate tax return.
- If the full amount cannot be utilized, the remaining credit may be reclaimed from the tax authority.
BUSINESS SUCCESS AT EVERY SCALE
MAXIMIZE YOUR GRANT RESULTS
WITH IBSH'S HELP
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Free consultation on subsidy opportunities
ibsh cooperation
1
state aid perspective due diligence of the company and designation of dedicated ibsh contact
2
setting up an eligible project, submit the subsidy application
3
communication with the managing body and the donor
4
preparing the financial and monitoring reports
THE UNIQUENESS OF IBSH
Market-leading experience gained on the donor’s side
Strategic advantage through stable professional relationships
Commitment to professional responsibility and fostering long-term partnerships
Let's work together to find the best solution for your company
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