PROMOTING ENTREPRENEURSHIP
• www.hipa.hu (Hungarian Investment Promotion Agency), Invest in Hungary leaflet
• http://eugo.gov.hu/starting-business-hungary
• http://eugo.gov.hu/doing-business-hungary
Examples for simplifications: e.g. time of setting up a business, flat corporate income tax rate, simplified taxes (KIVA, KATA)
Ministry of Finance: www.pm.gov.hu
National Tax and Customs Administration of Hungary: en.nav.gov.hu/
In 2017 a flat corporate income tax replaced the former progressive system in Hungary. The tax rate amounts to 9%.
Local business tax is maximum 2%, the innovation contribution is 0.3%.
The general VAT rate is 27%, reduced rates are 18% (e.g. bread, cereals, some dairy products, commercial accommodation services) and 5% (e.g. meat, egg, fish, journals, books, pharmaceuticals, medical appliances, internet and district heating services). VAT-exempt services are mainly financial, banking, insurance, healtcare, education, sport, postal, certain investment related services, sale and rental of real estate.
There is a wide range of tax allowances for new investments and R&D. Hungary provides tax exemption on holding structures, capital gains on shares and intellectual property under certain conditions are tax free, and a 50% tax allowance is applicable on royalty incomes. There is no withholding tax on dividends, interest and royalty paid by a Hungarian company to a foreign company. Hungary has a wide international treaty network with more than 80 double tax treaties.
Ministry for Innovation and Technology, Departement for Enterpirse Development: www.kormany.hu/en/ministry-for-innovation-and-technology
Széchenyi 2020: support from EU Structural Funds and Cohesion Fund, www.palyazat.gov.hu
Hungarian Development Bank: favourable loans or combined loan programmes, www.mfb.hu
Széchenyi Venture Capital Fund Management: altogether manages about HUF 71 billion, which is invested in companies with growth potential to develop Hungarian SMEs and to put them on a long term growth path: www.szta.hu
Hungarian Export-Import Bank Plc. (Eximbank): exim.hu/en/about-exim
Széchenyi Card: credit card, short term and long term credit: www.kavosz.hu
Credit guarantee programme: www.garantiqa.hu and www.avhga.hu (agrarian credit guarantee)
- Industrial Parks: 196 industrial parks altogether, of which about 120 locations are available for new investments
- title holder: local government or enterprise with legal personality
- ca. 4.000 companies settled in
- employ more than 180,000 people
- produce 30% of industrial output
Outline benefits that the business zones offer to entrepreneurs and potential investors:
- basic infrastructure needed for production (energy, water, waste-water treatment),
- through related technological work stages, the evolution of professional co-operation in order to cut production costs,
- a wide range of other quality services: Logistic services, Waste collection,
- public transport, maintenance and security services, Counseling Services
Contacts:
- Ministry for Innovation and Technology
- Association of Industrial, Innovation and Scientific Parks, ipe.hu (HU)
Hungarian Chamber for Trade and Industry: mkik.hu/en
MFB, Hungarian Development Bank: www.mfb.hu/en
IFKA Public Benefit Non-Profit Ltd. for the Development of Industry: ifka.hu/en
SEED Foundation for Small Enterprise Economic Development: seed.hu/en
Széchenyi Venture Capital Fund: www.szta.hu/about-2/
Hungarian Export-Import Bank Plc. (Eximbank): exim.hu/en/about-exim
KA-VOSZ: www.kavosz.hu (HU)
Offered services: mentoring, consultancy, training, financial assistance
Hungarian Investment Promotion Agency: www.hipa.hu
Highly skilled workforce, access to world class universities, an advantageous location, qualified suppliers, advanced business infrastructure, corporate income tax to a 9% flat rate;
Hungary introduced new forms of cash incentive measures in January 2017 to enhance corporate R&D activities, and the realization of technology intensive investments.
A VIP cash subsidy (subsidy based on individual government decision) may be granted under current legislation based on Government Decree No. 210/2014. (VIII.27.) on the utilisation of investment incentive targeted appropriations.
VIP cash subsidy on a job creation basis.
Széchenyi 2020 development programme: https://www.palyazat.gov.hu/program_szechenyi_2020
www.kormany.hu/en : website of the Hungarian Government, access to all the ministries
www.hipa.hu : Hungarian Investment Promotion Agency
