{"id":3538,"date":"2023-11-20T15:40:00","date_gmt":"2023-11-20T14:40:00","guid":{"rendered":"https:\/\/ibsh.hu\/?p=3538"},"modified":"2026-04-13T15:42:37","modified_gmt":"2026-04-13T13:42:37","slug":"what-you-need-to-know-about-the-rd-tax-incentive","status":"publish","type":"post","link":"https:\/\/ibsh.hu\/en\/what-you-need-to-know-about-the-rd-tax-incentive\/","title":{"rendered":"What You Need to Know About the R&amp;D Tax Incentive\u00a0"},"content":{"rendered":"<p>From January 1, 2024, a new type of research and development (R&amp;D) tax incentive is available within corporate income tax <a href=\"https:\/\/net.jogtar.hu\/jogszabaly?docid=99600081.TV\" target=\"_blank\" rel=\"noopener\">(Act LXXXI of 1996, Section 22\/G)<\/a>. The objective of this scheme is to provide a predictable, refundable, and direct financial advantage to companies engaged in genuine R&amp;D activities.\u00a0<\/p><p>This incentive allows for a reduction in corporate tax based on eligible R&amp;D costs and may offset up to 100% of the corporate tax payable. It takes priority over all other tax incentives and is not subject to the usual 70% or 80% utilization limits.&nbsp;<\/p><h2 class=\"wp-block-heading\"><strong>Form and Amount of the R&amp;D Tax<\/strong> <strong>Incentive<\/strong>\u00a0<\/h2><ul class=\"wp-block-list\"><li>It can be claimed as a direct tax incentive.&nbsp;<\/li><\/ul><ul class=\"wp-block-list\"><li>The deductible amount is 10% of eligible R&amp;D costs.&nbsp;<\/li><\/ul><ul class=\"wp-block-list\"><li>Utilization period: in the tax year in which the cost is incurred and in the following three tax years.&nbsp;<\/li><\/ul><ul class=\"wp-block-list\"><li>Duration: it can be elected for five consecutive tax years; the decision may only be modified from the sixth tax year onward.&nbsp;<\/li><\/ul><ul class=\"wp-block-list\"><li>It can be applied up to 100% of the corporate tax payable and takes precedence over other tax incentives.&nbsp;<\/li><\/ul><ul class=\"wp-block-list\"><li>If the taxpayer is unable to fully utilize the incentive during the relevant tax year(s), the unused amount may be refunded by the tax authority, effectively converting the tax incentive into a non-repayable subsidy.&nbsp;<\/li><\/ul><h2 class=\"wp-block-heading\"><strong>Eligibility Criteria<\/strong>&nbsp;<\/h2><p>The incentive is available to any company that:&nbsp;<\/p><ul class=\"wp-block-list\"><li>Has its registered seat in Hungary,&nbsp;<\/li><\/ul><ul class=\"wp-block-list\"><li>Conducts R&amp;D activities in its own name and at its own risk,&nbsp;<\/li><\/ul><ul class=\"wp-block-list\"><li>Performs activities that meet the criteria of basic research, applied research, or experimental development,&nbsp;<\/li><\/ul><ul class=\"wp-block-list\"><li>Has started its R&amp;D project after January 1, 2024.&nbsp;<\/li><\/ul><p>It is recommended to obtain a professional qualification of the R&amp;D project from the National Research, Development and Innovation Office (NKFIH), especially in the case of larger-scale developments.&nbsp;<\/p><h2 class=\"wp-block-heading\"><strong>R&amp;D Tax Incentive \u2013 Eligible Costs<\/strong>&nbsp;<\/h2><p>The incentive can be applied to the following costs directly related to the R&amp;D project:&nbsp;<\/p><ul class=\"wp-block-list\"><li><strong>Personnel expenses<\/strong>&nbsp;<br>Costs related to the working time employees spend on the R&amp;D project.&nbsp;<\/li><\/ul><ul class=\"wp-block-list\"><li><strong>Depreciation of tangible assets (pro rata)<\/strong>&nbsp;<br>Based on the usage of equipment required for the R&amp;D project.&nbsp;<\/li><\/ul><ul class=\"wp-block-list\"><li><strong>Operating and overhead costs<\/strong>&nbsp;<br>Such as energy costs, materials, rental fees, provided they are directly linked to the project.&nbsp;<\/li><\/ul><ul class=\"wp-block-list\"><li><strong>Patent-related costs<\/strong>&nbsp;<br>Fees associated with intellectual property used in the project.&nbsp;<\/li><\/ul><ul class=\"wp-block-list\"><li><strong>Purchased services<\/strong>&nbsp;<br>Services required for the implementation of the R&amp;D project:&nbsp;<\/li><\/ul><ul class=\"wp-block-list\"><li>From non-related parties: eligible up to 20% of total project costs&nbsp;<\/li><\/ul><ul class=\"wp-block-list\"><li>From related parties: eligible up to 10%, at arm\u2019s length pricing&nbsp;<\/li><\/ul><ul class=\"wp-block-list\"><li>A written declaration from the service provider is required confirming that the service has not received state aid&nbsp;<\/li><\/ul><h2 class=\"wp-block-heading\"><strong>Application Process<\/strong>&nbsp;<\/h2><ul class=\"wp-block-list\"><li>Identification of R&amp;D activities at project level&nbsp;<\/li><\/ul><ul class=\"wp-block-list\"><li>Preparation of technical and financial documentation&nbsp;<\/li><\/ul><ul class=\"wp-block-list\"><li>Requesting preliminary qualification from NKFIH&nbsp;<\/li><\/ul><ul class=\"wp-block-list\"><li>Claiming the tax incentive in the corporate tax return&nbsp;<\/li><\/ul><ul class=\"wp-block-list\"><li>If the full amount cannot be utilized, the remaining balance can be reclaimed from the tax authority.<\/li><\/ul><p>Feel free to entrust us with the administration process \u2013 <a href=\"https:\/\/ibsh.hu\/kapcsolat\/\" data-type=\"link\" data-id=\"https:\/\/ibsh.hu\/kapcsolat\/\">get in touch with us<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"<p>From January 1, 2024, a new type of research and development (R&amp;D) tax incentive is available within corporate income tax (Act LXXXI of 1996, Section 22\/G). The objective of this scheme is to provide a &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"What You Need to Know About the R&amp;D Tax Incentive\u00a0\" class=\"read-more button\" href=\"https:\/\/ibsh.hu\/en\/what-you-need-to-know-about-the-rd-tax-incentive\/#more-3538\" aria-label=\"Read more about What You Need to Know About the R&amp;D Tax Incentive\u00a0\">Read more<\/a><\/p>","protected":false},"author":3,"featured_media":3539,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[84],"tags":[214,157],"ppma_author":[154],"class_list":["post-3538","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized-en","tag-rd-funding-in-hungary","tag-rd-incentives-in-hungary","infinite-scroll-item","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"lang":"en","translations":{"en":3538},"authors":[{"term_id":154,"user_id":3,"is_guest":0,"slug":"kantor-adrienn","display_name":"Ol\u00e1h-K\u00e1ntor Adrienn","avatar_url":{"url":"https:\/\/ibsh.hu\/wp-content\/uploads\/2024\/01\/olah-kantor-adrienn.jpg","url2x":"https:\/\/ibsh.hu\/wp-content\/uploads\/2024\/01\/olah-kantor-adrienn.jpg"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":"","8":""}],"_links":{"self":[{"href":"https:\/\/ibsh.hu\/en\/wp-json\/wp\/v2\/posts\/3538","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ibsh.hu\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ibsh.hu\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ibsh.hu\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/ibsh.hu\/en\/wp-json\/wp\/v2\/comments?post=3538"}],"version-history":[{"count":5,"href":"https:\/\/ibsh.hu\/en\/wp-json\/wp\/v2\/posts\/3538\/revisions"}],"predecessor-version":[{"id":3571,"href":"https:\/\/ibsh.hu\/en\/wp-json\/wp\/v2\/posts\/3538\/revisions\/3571"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ibsh.hu\/en\/wp-json\/wp\/v2\/media\/3539"}],"wp:attachment":[{"href":"https:\/\/ibsh.hu\/en\/wp-json\/wp\/v2\/media?parent=3538"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ibsh.hu\/en\/wp-json\/wp\/v2\/categories?post=3538"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ibsh.hu\/en\/wp-json\/wp\/v2\/tags?post=3538"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/ibsh.hu\/en\/wp-json\/wp\/v2\/ppma_author?post=3538"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}