Further Favourable Changes to the HIPA Subsidy Scheme
2023. 12. 31.
The purpose of the amendment to the so-called ESIP Decree aims on the one hand for transposing the changed state aid rules of the European Union into the Hungarian legal system and on the other hand for introducing additional new aid instruments, which will further increase the competitiveness of Hungary's business environment.
Pursuant to Government Decree No. 632/2023. (XII. 23.) on the Amendment of Government Decree No. 210/2014 (VIII. 27.) (hereinafter: ESIP Decree) on the use of Earmarked Scheme for Investment Promotion from 24 December, 2023 further significant changes will be introduced.
The latest amendment of the General Block Exemption Regulation (Commission Regulation (EU) No 651/2014) has made it necessary to amend the ESIP Decree, as follows:
- the notification threshold for regional investment aid will be calculated at an eligible investment cost of EUR 110 million instead of EUR 100 million, and for that reason, the maximum aid intensities for aid that can be granted under national competence have been changed, i.e. on the basis of the regional aid map, the following maximum aid amounts apply for large enterprises:
- in cases of maximum regional aid intensity of 50 %, EUR 41.25 million, applicable to the counties of Bács-Kiskun, Békés, Csongrád-Csanád, Somogy, Tolna, Hajdú-Bihar, Jász-Nagykun-Szolnok, Szabolcs-Szatmár-Bereg, Nógrád and Pest planning-statistical region;
- in cases of maximum regional aid intensity of 30 %, EUR 24.75 million, applicable to the counties of Fejér, Komárom-Esztergom, Veszprém, Zala, Vas and Győr-Moson-Sopron;
- in cases of maximum regional aid intensity of 60 %, EUR 49.5 million, applicable to the counties of Baranya, Borsod-Abaúj-Zemplén and Heves;
- the maximum aid amount for R&D investment projects has increased from EUR 15 million to EUR 25 million, and an aid intensity of up to 50% may be available, depending on the content of the research activity;
- the maximum aid amount for training programs has been increased to the HUF amount equal to EUR 3 million.
Another important change is that the eligibility criteria for the creation of high value-added jobs has been reduced from 50 to 25 new workplaces for Shared Service Centre (SSC) investments.
In addition, a new aid scheme has been introduced for domestic companies with foreign subsidiaries, aiming at the ‘repatriation’ of their profits.
Finally, by introducing the so-called ‘profit-based VIP cash subsidy’, the donor intends to avoid the effects of the introduction of the global minimum tax in the business environment.
The amendment to the Decree is published in the relevant issue of the Hungarian National Gazette at the related link.
