Following a meeting of the National Competitiveness Council, the Hungarian Ministry of Finance recently announced that the Government is planning further tax cuts for companies, including improvements in the deductions available for research and development spending.
According to the ministry, the proposal would allow companies to deduct five times their expenditure on qualifying research and development for local business tax purposes. This would be in addition to the existing deductions for R&D expenditure. Depreciation costs can also be added to the list of eligible costs that can be deducted from taxable LPT income.
