The European Commission on Thursday formally requested, that Hungary stop offering tax incentives to EU-based companies limited to research and development activities in Hungary.
The Commission said the incentives are discriminative as they only apply to R+D activities in Hungary and not in other member states, which goes against the free movement of services, a key EU tenet.
The request takes the form of a reasoned opinion, which is the second step of an infringement procedure. If there is no satisfactory reaction to the reasoned opinion within two months, the Commission may decide to refer the matter to the European Court of Justice. (MTI-Econews)