BBJ: For a long time now, Hungary has had only limited access to EU funds. What forms of aid are available to companies for funding investment projects?
Gábor Matuss: There is indeed a limited range of opportunity in the area of applications, as there are very few state funding possibilities that can be used to pre-finance investment projects. However, in the near future, we can expect the launch of the Ányos Jedlik Energy Program, in the framework of which a total of HUF 440 billion will be available in various application sections, primarily for the financing of energy, energy-efficiency, and energy-saving developments. The good news is that there are other possibilities, such as tax discounts, and the system based on unique government decisions (EKD) is still in place.
BBJ: What are these tax discounts?
GM: Tax discounts include development, energy-efficiency, and R&D tax incentives. These are competitive with direct state aid in terms of their amounts and their aid intensity; in some cases, they even surpass them. There is no question that tax discounts are a post-financing form of support: their use assumes that the company will be able to turn a profit in the years following the investment or development project, which is the only way it will be able to generate the amount of tax to which the discount can be applied.
BBJ: The rules for energy-efficiency tax discounts were amended a little over a year ago. What is the essence of the change?
GM: Hungary introduced this tax discount to comply with EU requirements, and it was meant to play an important role in improving energy efficiency. However, partly due to the uncertainties surrounding eligible costs, it has not run its planned course. Just over a year ago, they introduced what can be called a very taxpayer-friendly change, which serves to reduce the uncertainty of legal interpretation as well as the administrative burden while allowing for even greater tax savings compared to previous cost settlement methods.
BBJ: The R&D tax discount has been around for decades. What trends does its use show among taxpayers?
GM: As activities that reduce the tax base or provide eligibility for a tax base discount, R&D discounts have indeed been part of Hungarian tax law for quite a while. The newest development is that, from 2024, in accordance with the introduction of the global minimum tax in Hungary, taxpayers can now receive a corporate tax discount for research and development costs in addition to reducing their tax base, meaning companies have been given more leeway in this respect as well.
This article was first published in the Budapest Business Journal print issue of June 27, 2025.
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