corporate tax allowances

Corporate tax allowances

The amount of corporate tax payable may be reduced by applying the following tax allowances: 

•  tax incentives for R&D activities of maximum 100 percent of the calculated corporate tax (reduced by R&D tax allowance, if any)
• development tax allowance of maximum 80 percent of the calculated corporate tax. 

The following allowances may be applied to maximum 70 percent of the tax reduced by development tax allowance: 

• tax allowance relating to film production sponsoring 
• tax allowance of spectator team sport sponsoring 
• tax allowance of small and medium size enterprises 
• tax allowance of live music service 
• tax allowance of investments serving energy efficiency purposes.
• tax allowance of investments in electricity storage facilities
  tax allowance of environmental protection invstments

The Hungarian CIT tax allowance regime is quite complex and the application is subject to various statutory requirements, thus requires a thoughtful planning.