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Innovation association critical of phasing out R&D write-offs

The Hungarian Innovation Association (MISZ) has criticized as unacceptable an amendment before Parliament which would phase out businesses possibility to write off research and development (R&D) expenses from an innovation tax.

MISZ president Gábor Szabó Gábor asked MPs not to support the amendment in an open letter on Monday.

The possibility of the write-off has encouraged businesses to give significant research orders to universities or scientific research institutions, and contributed to an increase in the share of businesses in total Hungarian R&D expenditure from 40% in 2004 to about 50%, the association said.