Government eyes tax benefits to support labor mobility, R&D
The government is planning to introduce tax benefits from next year in order to support the mobility of the labor force in Hungary, Minister of Foreign Affairs and Trade Péter Szijjártó announced today, according to Hungarian news agency MTI.
Commenting on unemployment figures posted by the Central Statistical Office (KSH) today, the minister said at the second Business Meets Government Summit conference organized by the Hungarian Investment Promotion Agency (HIPA) and the American Chamber of Commerce (AmCham) that while low unemployment figures are indeed good news, companies arriving in Hungary still face the challenge of securing the necessary volume of labor.
In response, the Hungarian government is planning to offer tax-free support of HUF 15 per kilometer for the cost of workers getting to the workplace or accommodation costs, expected to be deductible from the tax base, the minister was reported as saying.
“We are delighted that the 19-point package of recommendations entitled ‘Cooperation for a More Competitive Hungary’ and the related business-government consultations and cooperation could also contribute to the amendment of next year’s tax legislation, so that potential tax breaks available in the 2017 budget for companies engaged in research and development will almost double, while companies that can mobilize their workforce, thereby balancing geographically different workforce capacities, will also receive a significant tax break,” said AmCham President Ferenc Pongrácz, according to a press release sent to the Budapest Business Journal today.
“In addition to promoting direct dialogue between companies and the government, HIPA strives to ensure that the needs formulated by the private sector are part of the action plan that was launched by the government in order to make the business environment more attractive, thereby enabling Hungary to have the highest rate of direct foreign investment per capita in Central and Eastern Europe,” explained HIPA President Róbert Ésik.
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