WORLD TRADE  
ORGANIZATION  G/SCM/N/186/EEC/Add.12 
23 December 2009 
 
 (09-6555) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
   
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1
 
of the GATT 1994 and Article 25 of the Agreement  
on Subsidies and Countervailing Measures  
 
EUROPEAN COMMUNITIES 
 
Addendum  
   The following addendum to the notification of the European Communities
* relates to subsidy 
programmes of Hungary . 
 
_______________ 
 
 
                                                      
* On 1 December 2009, the Treaty of Lisbon amendi ng the Treaty on European Union and the Treaty 
establishing the European Comm unity (done at Lisbon, 13 Decembe r 2007) entered into force.  
On 29 November 2009, the WTO received a Verbal Note  (WT/L/779) from the Council  of the European Union 
and the Commission of the European Communities stating that, by virtue of the Treaty of Lisbon, as of 
1 December 2009, the European Union replaces and succeeds the European Community. G/SCM/N/186/EEC/Add.12 
Page 2  
 
  HUNGARY 
 
TABLE OF CONTENTS 
 
Page 
 
1. HUNGARY 2007 ................................................................................................................... ....4 
1.1 CORPORATE  TAX  CONCESSIONS  TO ASSIST  STRUCTURAL  ADJUSTMENT  
AND  ECONOMIC  DEVELOPMENT .......................................................................................4  
1.1.1 Tax Concession for Investment s Exceeding HUF 3 Billion .......................................................4  
1.1.2 Tax Concession for Investments Exceeding HUF 10 Billion .....................................................5  
1.1.3 Tax Concession Related to Investments .....................................................................................6  
1.1.4 Tax Relief for Projects of Sma ll and Medium Enterprises .........................................................7  
1.1.5 Tax Concession for Small and Medium Sized Enterprises.........................................................8  
1.1.6 Tax Concession Related to Development Projects .....................................................................9  
1.1.7 Tax Relief for Intellectual Products..........................................................................................1 0 
1.1.8 Tax Relief for Employment ...................................................................................................... 11 
1.1.9 Tax Concession for Soft ware Developers.................................................................................12  
1.1.10  Preferential Tax Rate .......................................................................................................... ......13  
1.1.11  Tax Relief for Research and Development...............................................................................14  
1.1.12  Tax Concession for Film Production ........................................................................................15  
1.1.13  Accelerated Depreciation for Small and Medium-sized Enterprises ........................................15  
1.1.14  Tax Relief for Capital Gains from Registered Shares...............................................................16  
1.2 RESEARCH  AND  TECHNICAL  INNOVATION  FUND .......................................................17  
1.3 BUDGETARY  SCHEME  EARMARKED  FOR  NATIONAL  INVESTMENT  
PROMOTION...................................................................................................................... .....18  
1.4 BUDGETARY  SCHEME  EARMARKED  FOR  INVESTMENT  PROMOTION ...................20  
1.5 MINING  CONVERSION  PROGRAMME...............................................................................21  
1.6 BUDGETARY  SCHEME  EARMARKED  FOR  THE  DEVELOPMENT  OF SMALL  
AND  MEDIUM  SIZED  ENTERPRISES .................................................................................22  
1.7 SUBSIDY  FOR  JOB  CREATION............................................................................................23  
1.8 SUBSIDY  FOR  EMPLOYMENT  OF PEOPLE  WITH  DISABILITIES .................................24  
1.9 CO-FINANCED  SUBSIDY  PROGRAMMES.........................................................................25  
1.9.1 Economic Development Operational Programme ....................................................................25  
1.9.2 Economic Competitiveness Oper ational Programme(ECOP) ..................................................26  
1.9.3 Environmental Protection and Infrastruct ure Operational Programme (EPIOP)......................28  
1.9.4 Human Resources Development Operational Programme (HRDOP) ......................................29  
1.9.5 Operational Programme for Re gional Development (RDOP) ..................................................30   G/SCM/N/186/EEC/Add.12 
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  Page 
 
1.9.6 Agriculture and Rural Developm ent Operational Programme..................................................31  
2. HUNGARY 2008 ................................................................................................................... ..32 
2.1 CORPORATE  TAX  CONCESSIONS  TO ASSIST  STRUCTURAL  ADJUSTMENT  
AND  ECONOMIC  DEVELOPMENT .....................................................................................32  
2.1.1 Tax Concession for Investments Exceeding HUF 3 Billion .....................................................32  
2.1.2 Tax Concession for Investments Exceeding HUF 10 Billion ...................................................33  
2.1.3 Tax Concession Related to Investments ...................................................................................34  
2.1.4 Tax Relief for Projects of Small and Medium Enterprises .......................................................35  
2.1.5 Tax Concession for Small and Medium Sized Enterprises.......................................................36  
2.1.6 Tax Concession Related to Development Projects ...................................................................37  
2.1.7 Tax Relief for Intellectual Products..........................................................................................3 8 
2.1.8 Tax Relief for Employment ...................................................................................................... 39 
2.1.9 Tax Concession for Soft ware Developers.................................................................................40  
2.1.10  Preferential Tax Rate .......................................................................................................... ......41  
2.1.11  Tax Relief for Research and Development...............................................................................42  
2.1.12  Tax Concession for Film Production ........................................................................................43  
2.1.13  Accelerated Depreciation for Small and Medium-sized Enterprises ........................................44  
2.1.14  Tax Relief for Capital Gains from Registered Shares...............................................................45  
2.2 RESEARCH  AND  TECHNICAL  INNOVATION  FUND .......................................................46  
2.3 BUDGETARY  SCHEME  EARMARKED  FOR  NATIONAL  INVESTMENT  
PROMOTION...................................................................................................................... .....47  
2.4 BUDGETARY  SCHEME  EARMARKED  FOR  INVESTMENT  PROMOTION ...................48  
2.5 MINING  CONVERSION  PROGRAMME...............................................................................49  
2.6 BUDGETARY  SCHEME  EARMARKED  FOR  THE  DEVELOPMENT  OF SMALL  
AND  MEDIUM  SIZED  ENTERPRISES .................................................................................50  
2.7 SUBSIDY  FOR  JOB  CREATION............................................................................................51  
2.8 EMPLOYMENT  SUBSIDY  OF PEOPLE  WITH  DISABILITIES ..........................................52  
2.9 CO-FINANCED  SUBSIDY  PROGRAMMES.........................................................................53  
2.9.1 Economic Development Opera tional Programme (EDOP) ......................................................53  
2.9.2 Central Hungary Operatio nal Programme (CHOP) ..................................................................55  
2.9.3 Economic Competitiveness Opera tional Programme (ECOP) .................................................56  
2.9.4 Environmental Protection and Infrastruct ure Operational Programme (EPIOP)......................57  
2.9.5 Human Resources Development Operational Programme (HRDOP) ......................................59  
2.9.6 Operational Programme for Re gional Development (RDOP) ..................................................60  
2.9.7 Agriculture and Rural Developmen t Operational Programme ARDOP ...................................61 G/SCM/N/186/EEC/Add.12 
Page 4  
 
   
1. HUNGARY 2007 
1.1 CORPORATE
 TAX  CONCESSIONS  TO ASSIST  STRUCTURAL  ADJUSTMENT  AND  
ECONOMIC  DEVELOPMENT 
1.1.1 TAX CONCESSION FOR INVESTMENTS EXCEEDING HUF 3 BILLION 
1. Title of the subsidy programme  
  Tax concession for investments exceeding HUF 3 billion.  2. Period covered by the notification
 
 
 2007  3. Policy objective and/or purpose of the subsidy
 
 
 The purpose of this tax concession is to stim ulate investments in underdeveloped regions 
from a social-economic point of view and/or in c ounties having unemployment rate higher than 15 per 
cent.  4. Background and authority for the subsidy
 
 
 This tax benefit is provided for by Secti on 21 of the Act LXXXI of 1996 on the Corporate 
Tax and Dividend Tax.  5. Form of the subsidy
 
 
 The subsidy is in the form of deduction from the corporate tax. 
 6. To whom and how the subsidy is provided
 
  Companies with head office or premises registered in a socially-economically 
underdeveloped region and/or in a county where the unemployment rate exceeds 15 per cent, and after 
31 December 1996 began an investment of at le ast HUF 3 billion for the production of goods may 
receive a tax concession in a ten year period following the project's start up.   The above tax benefit can only be applied fo r from the second taxation year and thereafter if 
the annual average number of the staff employed exceeds by at least 100 persons the average number 
of the staff employed in the year preceding the start up. 
  The tax concession equals to the ratio of sal es revenue from manufacturing operations to the 
total sales revenue.   This tax concession can not be applied to projects commencing subsequent to 
31 December 2002. 
 7. Subsidy per unit or the total amount
 
  The tax benefit accounted for HUF 18.6 billion in 2007. 
  G/SCM/N/186/EEC/Add.12 
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  8. Duration of the subsidy  
  This tax concession may not be applied after the year 2011.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A.  1.1.2 TAX CONCESSION FOR INVESTMENTS EXCEEDING HUF 10 BILLION 
1. Title of the subsidy programme
 
 
 Tax concession for investments exceeding HUF 10 billion.  2. Period covered by the notification
 
 
 2007 
 3. Policy objective and/or purpose of the subsidy
 
  The purpose of this tax benefit is  to promote large investments. 
 
4. Background and authority for the subsidy
 
  This tax benefit is provided for by Secti on 21 of Act LXXXI of 1996 on the Corporate Tax 
and Dividend Tax.  
5. Form of the subsidy
 
  The subsidy is in the form of deduction from the corporate tax.  6. To whom and how the subsidy is provided
 
 
 Companies that began after 31 December 1996 an investment of at least HUF 10 billion 
destined for the production of goods may receive a 100 per cent tax concession in a ten year period 
following the project's start up.   The above tax benefit can only be applied fo r if the annual average number of the staff 
employed exceeds by at least 500 persons the average number of the staff employed in the year 
preceding the start up.   This tax concession can not be applied to projects commencing subsequent to 
31 December 2002.  
7. Subsidy per unit or the total amount
 
  The tax benefit accounted for HUF 59.8 billion in 2007.  8. Duration of the subsidy
 
 
 This tax concession may not be applied after the year 2011.  G/SCM/N/186/EEC/Add.12 
Page 6  
 
  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  1.1.3 TAX CONCESSION RELATED TO INVESTMENTS 
1. Title of the subsidy programme
 
  Tax concession related to investments.  2. Period covered by the notification
 
 
 2007  3. Policy objective and/or purpose of the subsidy
 
 
 The objective of this scheme is to promote deve lopment activities by corporations of a certain 
importance whose investment projects result in the manufacturing of up-to-date and environment 
friendly products and thereby increasing their sales and/or creating new jobs.  4. Background and authority for the subsidy
 
 
 This tax concession has been provided for by Section 14/A., paragraph (2) of Act LXXXVI of 
1991 on the Corporate Tax, and Decree 90/1994 (VI.8)  of the Government on Certain Corporate Tax 
Benefits as modified by Decree 190/1994 (XII.31) of the Government on Certain Corporate Tax benefits, and Section 29, paragra ph (5), subparagraph d) of Act LXXXI of 1996 on the Corporate Tax 
and Dividend Tax. 
 
5. Form of the subsidy
 
  The subsidy is in the form of deduction from the corporate tax.  6. To whom and how the subsidy is provided
 
 
 Application for the concession could be ma de by a company (a) whose founders' equity 
exceeded HUF 500 million and (b) projected to make  investment for at least HUF 200 million that 
(c) resulted in yearly sales revenue half of which was realized from the manufacturing of environment friendly products and/or from the sales of products  that have been produced by using modern 
technologies and/or employing the results of scientific  research and (d) project ed an increase in its 
turnover or (e) the creation of new jobs.  Unde r Section 14/A. of the Corporate Tax Act the 
Government was granted discretionary power to gran t individual tax concessions to applicants that 
met the criteria referred to above.  7. Subsidy per unit or the total amount
 
 
 The maximum extent of the subsidy is 100 pe r cent of the corporate tax due for the first 
5 years and 60 per cent for the second period of 5 years.   The tax concession can be made use of in the form of withholding the tax out of the tax 
calculated. 
  The tax benefit accounted for HUF 0.2 billion in 2007.   G/SCM/N/186/EEC/Add.12 
 Page 7 
 
 
  8. Duration of the subsidy  
  The provisions of the Corporate Tax Act in troducing this scheme came into effect on 
1 January 1994 and lost effect on 1 January 1995.  The possibility of obta ining tax concession under 
this scheme was abolished by Section 13, paragrap h (5), subparagraph a) of Act LXXXIII of 1994 
with effect as of 1 January 1995.  However, part icular concessions grante d before that date will 
continue to be applied until their expiry date a pproved by the Government and provided that the 
criteria continue to be met.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A.  1.1.4 TAX RELIEF FOR PROJECTS OF SMALL AND MEDIUM ENTERPRISES 
1. Title of the subsidy programme
 
 
 Tax relief for projects of small and medium enterprises.  2. Period covered by the notification
 
  2007 
 
3. Policy objective and/or purpose of the subsidy
 
  The objective of this scheme is to promot e investment activities of small and medium 
enterprises. 
 
4. Background and authority for the subsidy
 
  The tax relief is provided for by Section 7, paragraph (1), subparagraphs of Act LXXXI of 
1996 on the Corporate Tax and Dividend Tax.  
5. Form of the subsidy
 
  This subsidy is in the form of deduction from the corporate tax base. 
 6. To whom and how the subsidy is provided
 
 
 Investing small and medium enterprises, provi ded all of their members were private natural 
persons in the tax year.  7. Subsidy per unit or the total amount
 
 
 The tax relief is equal to the total amount of th e project costs, but may not be higher than the 
pre-tax profit or HUF 30 million.   The tax benefit accounted for HUF 12.6 billion in  2007 (the declared tax relief multiplied by 
the 16 per cent tax rate). 
 G/SCM/N/186/EEC/Add.12 
Page 8  
 
  8. Duration of the subsidy
 
  This tax relief was introduced in 2001.  No exp licit time limit is attached to this subsidy. 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A.  1.1.5 TAX CONCESSION FOR SMALL AND MEDIUM SIZED ENTERPRISES 
1. Title of the subsidy programme
 
 
 Tax concession for small and medium sized enterprises.  2. Period covered by the notification
 
 
 2007 
 3. Policy objective and/or purpose of the subsidy
 
  The purpose of this tax concession is to stimulate investment activities of small and medium-sized enterprises. 
 
4. Background and authority for the subsidy
 
  The tax concession is provided for by Secti on 22/A of Act LXXXI of 1996 on Corporate Tax 
and Dividend Tax. 
 
5. Form of the subsidy
 
  The subsidy is in the form of deduction from the corporate tax.  6. To whom and how the subsidy is provided
 
 
 Small and medium-sized enterprises fina ncing their investments by bank loans. 
 7. Subsidy per unit or the total amount
 
 
 The tax concession is equal to 40 per cent of the interest paid on bank loans during the tax 
year.  The concession may not be in excess of HUF 6 million per year.   The tax benefit accounted for HUF 2.7 billion in 2007.  8. Duration of the subsidy
 
 
 This tax concession was introduced in 2001.  No e xplicit time limit is attached to this subsidy. 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A. 
   G/SCM/N/186/EEC/Add.12 
 Page 9 
 
 
  1.1.6 TAX CONCESSION RELATED TO DEVELOPMENT PROJECTS 
1. Title of the subsidy programme  
  Tax concession related to development projects.  
2. Period covered by the notification
 
  2007  3. Policy objective and/or purpose of the subsidy
 
 
 The objective of this scheme is to  stimulate investment activities. 
 4. Background and authority for the subsidy
 
 
 This tax concession has been provided for by Section 22/B of Act LXXXI of 1996 on the 
Corporate Tax and Dividend Tax.  5. Form of the subsidy
 
  The subsidy is in the form of deduction from the corporate tax. 
 
6. To whom and how the subsidy is provided
 
  Tax concession is granted to a taxpayer whose development project enta ils an investment of 
at least HUF 3 billion or HUF 1 billion if the project is started and operated in preferable regions.  The 
tax concession can be applied in the four years fo llowing the first year in which the tax concession is 
used if:  
(a) the average work force employed exceeds the average number of persons employed 
during the year prior to the commencement of  the project by at least 150 workers - or 
75 workers if the project is started a nd operated in preferable regions;  or 
 
(b) if the taxpayer's annualized wage costs ar e at least 600 times greater than the amount 
of the minimum wage effective on the first day of the tax year as calculated for the tax year - or at least 300 times greater if the project is launched and operated in preferable regions - as compared to the annualized wage  costs of the year preceding the year in 
which the project commenced. 
 
Tax concession is granted for: 
 
(a) development projects with a value of at least HUF 100 million, if it constitutes the 
launch and operation of an independent e nvironmental protection project or a basic 
research, applied research and experiment al development or a motion picture and 
video production project; 
 
(b) projects serving to create new jobs. 
 G/SCM/N/186/EEC/Add.12 
Page 10  
 
   Tax concession for projects serving to create new jobs is granted if during the four years 
subsequent to the third tax year following the first year in which the tax allowance is used: 
 
(a) at least 20 per cent of the total workfo rce hired for the new jobs created under the 
development programme are new entran ts in the labour market;  and 
 
(b) the average work force employed exceeds the average number of persons employed 
during the year prior to the commencement of the project by at least 300 workers (150 workers for medium-sized enterprises,  30 workers for small enterprises), or 
150 workers (75 workers for medium-siz ed enterprises, 15 workers for small 
enterprises) if the project is started and ope rated in preferable regions, or 20 workers 
(5 workers for small and medium-sized enterprises) if the project is started and operated in any one of the 48 micro-re gions deemed most underprivileged. 
 7. Subsidy per unit or the total amount
 
 
 The support granted to a specific developmen t project may not be higher than the amount 
computed by the ratio stipulated in the legi slation from the total cost of the project. 
  The tax concession may be claimed up to 80 per cent of the corporate income tax otherwise payable. 
 
 The tax benefit accounted for HUF 14.7 billion in 2007.  8. Duration of the subsidy
 
 
 The tax concession may be applied for ten years. 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  
1.1.7 TAX RELIEF FOR INTELLECTUAL PRODUCTS 
1. Title of the subsidy programme
 
  Tax relief for intellectual products.  
2. Period covered by the notification
 
  2007  3. Policy objective and/or purpose of the subsidy
 
 
 The objective of this scheme is to promote intellectual activities. 
 4. Background and authority for the subsidy
 
  This tax relief has been provided for by Section 7, paragraph (1), subparagraphs) of 
Act LXXXI of 1996 on the Corporate Tax and Dividend Tax. 
  G/SCM/N/186/EEC/Add.12 
 Page 11 
 
 
  5. Form of the subsidy  
  This subsidy is in the form of deduction from the corporate tax base. 
 6. To whom and how the subsidy is provided
 
 
 Small and medium-sized enterprises.  7. Subsidy per unit or the total amount
 
 
 The tax relief is equal to the expenses incurre d in connection with the acquisition of rights in 
Hungary of a patent, consumer or  industrial design and consumer or  industrial design protection right. 
  The tax benefit accounted for HUF 0.1 billion in 2007 (the declared tax relief multiplied by 
the 16 per cent tax rate). 
 
8. Duration of the subsidy
 
  This tax relief was introduced in 2005.  No exp licit time limit is attached to this subsidy. 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A.  1.1.8 TAX RELIEF FOR EMPLOYMENT 
1. Title of the subsidy programme
 
 
 Tax relief for employment.  2. Period covered by the notification
 
  2007 
 
3. Policy objective and/or purpose of the subsidy
 
  The objective of this scheme is to promote employment.  
4. Background and authority for the subsidy
 
  This tax relief has been provided for by S ection 7, paragraph (1), subparagraph y) of 
Act LXXXI of 1996 on the Corporate Tax and Dividend Tax.  5. Form of the subsidy
 
 
 This subsidy is in the form of deduction from the corporate tax base. 
6. To whom and how the subsidy is provided  
  Micro enterprises with no more than five employees. 
 G/SCM/N/186/EEC/Add.12 
Page 12  
 
  7. Subsidy per unit or the total amount
 
  The tax relief is equal to the sum recei ved by multiplying the minimum wage by any 
increment in the average number of employees in comp arison to the previous tax year.  This tax relief 
can be applied if the taxpayer has no tax debts. 
 
 The tax benefit accounted for HUF 0.1 billion in 2007 (the declared tax relief multiplied by 
the 16 per cent tax rate).  8. Duration of the subsidy
 
 
 This tax relief was introduced in 2005.  No exp licit time limit is attached to this subsidy. 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A. 
 1.1.9 TAX CONCESSION FOR SOFTWARE DEVELOPERS 
1. Title of the subsidy programme
 
  Tax concession for software developers. 
 
2. Period covered by the notification
 
  2007  
3. Policy objective and/or purpose of the subsidy
 
  The objective of this scheme is to stimulate the employment of software developers in small and medium-sized enterprises.  4. Background and authority for the subsidy
 
 
 This tax concession has been provided for by Section 22, paragraph ( 10) of Act LXXXI of 
1996 on the Corporate Tax and Dividend Tax.  5. Form of the subsidy
 
 
 The subsidy is in the form of deduction from the corporate tax.  6. To whom and how the subsidy is provided
 
  Small and medium-sized enterprises employing software developers. 
 
7. Subsidy per unit or the total amount
 
  Small and medium-sized enterprises are entitle d to a tax concession of  15 per cent of the 
wages and salaries paid to a software developer during the tax year.  The tax concession can be 
claimed during the tax year and the following three tax years in equal instalments. 
  The tax benefit accounted for HUF 0.2 billion in 2007.   G/SCM/N/186/EEC/Add.12 
 Page 13 
 
 
  8. Duration of the subsidy  
  This tax concession was introduced in 2006.  No e xplicit time limit is attached to this subsidy. 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A.  1.1.10  PREFERENTIAL TAX RATE 
1. Title of the subsidy programme
 
 
 Preferential tax rate.  2. Period covered by the notification
 
 
 2007 
 3. Policy objective and/or purpose of the subsidy
 
  The programme is intended to reduce tax burden for smaller companies.  
4. Background and authority for the subsidy
 
  This tax benefit is provided for by Section 19, paragraphs (2)-(6) of Act LXXXI of 1996 on 
the Corporate Tax and Dividend Tax.  
5. Form of the subsidy
 
  The subsidy is in the form of reduced corporate tax rate.  6. To whom and how the subsidy is provided
 
 
 For the preferential tax rate, the taxpayer can not make use of any tax incentives, it must 
employ at least one employee in the tax year and it has to pay social security contributions with 
respect to each of its employees in an amount whic h equals at least 1.5 times the contributions 
payable on the minimum wage (in disadvantaged  regions only up to the amount payable on the 
minimum wage). 
 
7. Subsidy per unit or the total amount  
  A preferential tax rate of 10 per cent is appli cable to the part of the tax base which does not 
exceed HUF 5 million, while any excess profits are taxable at the general 16 per cent rate.  
 The tax benefit accounted for HUF 1.1 billion in 2007. 
 8. Duration of the subsidy
 
  This regime was introduced in 2006.  No exp licit time limit is attached to this subsidy. 
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A. G/SCM/N/186/EEC/Add.12 
Page 14  
 
   
 1.1.11  TAX RELIEF FOR RESEARCH AND DEVELOPMENT 
1. Title of the subsidy programme
 
 
 Tax relief for research and development. 
 2. Period covered by the notification
 
  2007 
 
3. Policy objective and/or purpose of the subsidy
 
  The objective of this scheme is to promote the R and D activity.  
4. Background and authority for the subsidy
 
  The tax relief is provided for by Section 7, paragraph (1), subparagraph t), and 
paragraphs (17) and (18) of  Act LXXXI of 1996 on the Corporate Tax and Dividend Tax. 
 5. Form of the subsidy
 
 
 This subsidy is in the form of deduction from the corporate tax base. 
 6. To whom and how the subsidy is provided
 
 
 Taxpayers engaged in basic research, app lied research and experimental development 
performed on premises managed by a research ins titution founded by an institution of higher 
education or the Hungarian Academy of Sciences ma y claim three times the general tax relief, or 
maximum HUF 50 million.  7. Subsidy per unit or the total amount
 
 
 The tax relief is equal to the direct costs of basic research, applied research and experimental 
development incurred.  Any support or assistance received for development purposes can not be taken 
into account.  
 The tax benefit accounted for HUF 19.2 billion in  2007 (the declared tax relief multiplied by 
the 16 per cent tax rate).  8. Duration of the subsidy
 
  This tax relief was introduced in 1997.  No exp licit time limit is attached to this subsidy. 
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.   G/SCM/N/186/EEC/Add.12 
 Page 15 
 
 
  1.1.12  TAX CONCESSION FOR FILM PRODUCTION 
1. Title of the subsidy programme  
  Tax concession for film production.  
2. Period covered by the notification
 
  2007  3. Policy objective and/or purpose of the subsidy
 
 
 The purpose of this tax concession is to stimulate film production.  4. Background and authority for the subsidy
 
 
 The tax concession is provided for by Section 22, paragraphs (1) and (3) of Act LXXXI of 
1996 on Corporate Tax and Dividend Tax.  5. Form of the subsidy
 
  The subsidy is in the form of deduction from the corporate tax. 
 
6. To whom and how the subsidy is provided
 
  Taxpayers sponsoring film productions.  
7. Subsidy per unit or the total amount
 
  The tax concession is equal to the amount dona ted for film production.  The tax concession 
can be applied during four years.   The tax concession may be claimed up to 70 per cent of the corporate income tax otherwise 
payable. 
  The tax benefit accounted for HUF 4.8 billion in 2007.  8. Duration of the subsidy
 
 
 This tax concession was introduced in 1 April 2004.  No explicit time limit is attached to this 
subsidy.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A. 
 1.1.13  ACCELERATED DEPRECIATION FOR SMALL AND MEDIUM-SIZED ENTERPRISES 
1. Title of the subsidy programme
 
 
 Accelerated depreciation for small and medium-sized enterprises. 
 G/SCM/N/186/EEC/Add.12 
Page 16  
 
  2. Period covered by the notification
 
  2007  3. Policy objective and/or purpose of the subsidy
 
 
 The objective of this scheme is to promote investment activities.  4. Background and authority for the subsidy
 
 
 This tax relief has been provided for by A nnex 1, point 14 of Act LXXXI of 1996 on the 
Corporate Tax and Dividend Tax.  5. Form of the subsidy
 
 
 This subsidy is in the form of deduction from the corporate tax base. 
 6. To whom and how the subsidy is provided
 
  Small and medium-sized enterprises maki ng investments in underdeveloped regions. 
 
7. Subsidy per unit or the total amount
 
  Small and medium-sized enterprises may clai m 100 per cent depreciation on the value of 
machinery, equipment and vehicles (except passenger cars), which have never been used previously, 
if these tangible assets are used in any one of the 48 micro-regions deemed most underprivileged. 
 
 The tax benefit accounted for HUF 0.3 billion in 2007.  8. Duration of the subsidy
 
  This tax relief was introduced in 10 May 2005.  No explicit time limit is attached to this 
subsidy. 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A. 
 
1.1.14  TAX RELIEF FOR CAPITAL GAINS FROM REGISTERED SHARES 
1. Title of the subsidy programme
 
  Tax relief for capital gains from registered shares.  
2. Period covered by the notification
 
  2007  3. Policy objective and/or purpose of the subsidy
 
 
 The objective of this scheme is to promote the capital market.   G/SCM/N/186/EEC/Add.12 
 Page 17 
 
 
  4. Background and authority for the subsidy  
  The tax relief is provided for by Section 7, paragraph (1), subparagraphs) of Act LXXXI of 
1996 on the Corporate Tax and Dividend Tax.  
5. Form of the subsidy
 
  This subsidy is in the form of deduction from the corporate tax base. 
 6. To whom and how the subsidy is provided
 
 
 Taxpayers transferring so-called registered shares can enjoy this tax benef it.  This tax benefit 
can apply on shares which represent at least a 30 pe r cent participation in an economic agent provided 
that shares in question are registered at the tax authority.  
7. Subsidy per unit or the total amount
 
  The tax relief is equal to the capital gains from th e transfer of registered shares.  For the tax 
benefit, the taxpayer must hold registered shares co ntinuously for more than two years prior to the 
transaction.  
 The tax benefit accounted for HUF 0.3 billion in 2007 (the declared tax relief multiplied by 
the 16 per cent tax rate).  8. Duration of the subsidy
 
 
 This tax relief was introduced in 2007.  No exp licit time limit is attached to this subsidy. 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  
1.2 RESEARCH
 AND  TECHNICAL  INNOVATION  FUND 
1. Title of the subsidy programme  
  Innovation Fund for R esearch and Technology 
 
2. Period covered by the notification
 
  2007  3. Policy objective and/or purpose of the subsidy
 
 
 The Fund is intended to improve the competitiveness and innovation performance of the 
Hungarian economy.  Its main objectives are:  
• to increase and concentrate the innovation activity of the enterprises with the 
emphasis on utilisation of innovative, marketable and competitive products; 
• to increase the regional innovation capacity; G/SCM/N/186/EEC/Add.12 
Page 18  
 
  • to increase the cooperation between the resea rch and industrial pr oduction sphere by 
improving the conditions of innovation environment. 
4. Background and authority for the subsidy
 
  Act XC. of 2003 on the Innovation Fund for Research and Technology 
 Act CXXXIV of 2004 on Research, Deve lopment and Technol ogical Innovation. 
 5. Form of the subsidy
 
  Grant  
6. To whom and how the subsidy is provided
 
  Public and private research entities, en terprises, non-profit organisations and common 
projects conducted by companies in consortia with  public/university laboratories may receive the 
support. 
 
 Support from the Fund may be received through open tender procedures for the purposes set in the Act.  7. Subsidy per unit or the total amount
 
 
 Payments under this programme amounted to HUF 32.3 billion. 
 8. Duration of the subsidy
 
  No explicit time limit is attached to the programme. 
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  1.3 BUDGETARY
 SCHEME  EARMARKED  FOR  NATIONAL  INVESTMENT  PROMOTION 
1. Title of the subsidy programme  
  Budgetary scheme earmarked for National Investment Promotion. 
 2. Period covered by the notification
 
 
 2007  3. Policy objective and/or purpose of the subsidy
 
 
 The scheme is designed to assist the realis ation of national economic and investment 
promotion policy objectives in compliance with Hunga ry's obligations under EU  law and international 
agreements by promoting i.a.:  
• foreign direct investment in Hungary; 
• realisation of industrial parks and innovation centres;  G/SCM/N/186/EEC/Add.12 
 Page 19 
 
 
  • establishment of quality assurance and certification systems necessary for the 
introduction of products into foreign markets; 
• regional development; 
• participation in international aid programmes; 
• information and PR activities bringing about investment incentives; 
• development of subcontractors' network, in particular SMEs; 
• enhancement of the suppliers' competitiveness in particular SMEs; 
• financing of measures to protect consumers; 
• establishment of market monitoring systems; 
• development of human resources; 
• modernization of technologies; 
• realisation of logistic centres and services; 
• realization of industrial clusters; 
• enhancement of innovation and R+D. 
 
4. Background and authority for the subsidy  
 
 Act on annual state budget, Decree 1/2001 (I. 5. ) of the Minister of Economic Affairs. 
 5. Form of the subsidy
 
 
 The subsidy can be provided for in the fo rm of grant, and interest rate support. 
 6. To whom and how the subsidy is provided
 
  Domestic legal persons, economic corpora tions without legal personality, self-employed 
persons, cooperatives, professional as sociations, Chamber of Trade a nd Industry, natural persons of 
Hungarian citizenship, public benefit companies, local governments. 
  All kinds of subsidy are aw arded through tender procedures.  The upper limit of support is 
specified in the call for tender.  At least 25 per cen t of the project cost should be financed from own 
source. 
 
7. Subsidy per unit or the total amount
 
  The total amount accounted for HUF 1,901 billion.  G/SCM/N/186/EEC/Add.12 
Page 20  
 
  8. Duration of the subsidy
 
  No explicit time limit is attached to the programme.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A.  1.4 BUDGETARY
 SCHEME  EARMARKED  FOR  INVESTMENT  PROMOTION 
1. Title of the subsidy programme  
 
 Budgetary scheme earmarked for investment promotion 
 2. Period covered by the notification
 
 
 2007 
 3. Policy objective and/or purpose of the subsidy
 
  The scheme is designed to assist the realiza tion of strategic investment in manufacturing 
industry, creation of R+D investments, logistic cen tres and projects in tourist sector in compliance 
with Hungary's obligations under EU law and in ternational agreements by promoting i.a.: 
 
- enhancement of the international competitiveness; - acceleration of industrial restructuring; - development of technologies; 
- foreign direct investments of strategic investors; 
- creation of regional service centres; - establishment of R+D investments; - realization of investments in tourism sector; - realisation of logistic centres and developmen t of their services, realisation of logistic 
service centres and capacities – in particul ar SMEs – supporting logistic activities. 
 
4. Background and authority for the subsidy
 
  Annual Act on state budget, Decree 8/2007 (I. 24.)  of the Minister of Economy and Transport. 
 
5. Form of the subsidy
 
  The subsidy is to be provided in the form of grant.  6. To whom and how the subsidy is provided
 
 
 Domestic legal persons, economic corpora tions without legal personality, European 
companies, European cooperatives registered in Hungary.   Subsidy is awarded on the basis of the Government decision.  The upper limit of support is in accordance with the maximum aid in tensity specified in 85/2004.  (IV 19) Government Decree.  At 
least 40 per cent of the project cost should be financed from own source. 
  G/SCM/N/186/EEC/Add.12 
 Page 21 
 
 
  7. Subsidy per unit or the total amount  
  The total amount accounted for HUF 20,452 billion.  8. Duration of the subsidy
 
 
 No explicit time limit is attached to the programme.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A. 
 1.5 MINING
 CONVERSION  PROGRAMME 
1. Title of the subsidy programme  
 
 Mining conversion programme 
 2. Period covered by the notification
 
  2007  
3. Policy objective and/or purpose of the subsidy
 
  The assistance is intended to address major social problems stemming from structural adjustment in the sector and the need of ensu ring progressive and orderly reduction of mining. 
 
4. Background and authority for the subsidy
 
  Annual state budget, Decree 52/2007 (III. 26.) Korm. of the Government.  5. Form of the subsidy
 
 
 Grant. 
 6. To whom and how the subsidy is provided
 
  Aid is granted by the government to specifi c mining companies on the basis of either the 
Act on State Budget or within its own discretionary power. 
 7. Subsidy per unit or the total amount
 
  The support accounted for HUF 1 billion.  
8. Duration of the subsidy
 
  No explicit time limit is attached to this programme.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A.  G/SCM/N/186/EEC/Add.12 
Page 22  
 
  1.6 BUDGETARY
 SCHEME  EARMARKED  FOR  THE  DEVELOPMENT  OF SMALL  AND  
MEDIUM  SIZED  ENTERPRISES 
1. Title of the subsidy programme  
  Budgetary scheme earmarked for the developm ent of small and medium sized enterprises. 
 
2. Period covered by the notification
 
  2007  
3. Policy objective and / or purpose of the subsidy
 
  The scheme is designed to help SMEs over come disadvantages inherent in their size. 
 4. Background and authority for the subsidy
 
 
 The subsidy is provided for by the Act XXXI V of 2004 on the Small and Medium Sized 
Enterprises and on the Support of their Developm ent, the acts on annual state budgets and the 
Decree 19/2005.  (II. 27.) of the Minister for Economy and Transport..  5. Form of the subsidy
 
 
 The support can be provided for in the form of  grant, interest rate support, preferential 
guarantee fee.  6. To whom and how the subsidy is provided
 
 
 All kinds of subsidy are awarde d through tender procedures, targeted directly or indirectly to 
micro, small or medium-sized enterprises (SMEs).   Support may be granted for programmes whose purpose is i.a.:  
- to help SMEs managing liquidity and financing working capital; 
- to attain entrepreneurial knowledge, to  develop entrepreneurial culture and 
managerial qualities. 
  The subsidy may not be in excess of 65 per cent of the programme's total costs except for 
depressed counties where the ceiling is 95 per cent. 
 7. Subsidy per unit or the total amount
 
  The total amount accounted for HUF 3 706,9 million.  
8. Duration of the subsidy
 
  No explicit time limit is attached to this programme.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A.   G/SCM/N/186/EEC/Add.12 
 Page 23 
 
 
  1.7 SUBSIDY  FOR  JOB  CREATION 
1. Title of the subsidy program  
  Labour Market Fund  
2. Period covered by the notification
 
  2007  3. Policy objective and / or purpose of the subsidy
 
 
 Promoting creation of new jobs through investments.  4. Background and authority for the subsidy
 
 
 The subsidy is provided for by 18. § of the Act IV of 1991 on Job Assistance and 
Unemployment Benefits and the 18. § of the D ecree 6/1996.  (VII. 16.) of the Minister for 
Employment on employment subsidies and subsidy for crisis management. 
 5. Form of the subsidy
 
 
 Non-reimbursable subsidy. 
 6. To whom and how the subsidy is provided
 
  All kinds of subsidy are aw arded through tender procedures.  At least 25 per cent of the 
expenditure of investment must be financed from own source. 
  Support may be granted for those employers who create new jobs, connected to investment.  Support may be granted for those employers who undertake to:  
- realize the investment in a year after its initiation; 
- sustain and operate capacities and services produced by the investment continuously 
at least for 5 years in accordance of the original purpose (for SMEs at least for 
3 years);  and 
- maintain the employee number indicated in the application at least 3 years after hiring 
them (for SMEs at least for 2 years). 
 
 The subsidy may not be in excess of 25- 50 per cent of the programme's total costs depending 
on the regional classification.  This upper limit can  be increased by 20 per cent for small enterprises, 
and by 10 per cent for medium sized enterprises.  7. Subsidy per unit or the total amount
 
 
 The total amount accounted for HUF 1 500 million.  8. Duration of the subsidy
 
 
 No explicit time limit is attached to this program. 
 G/SCM/N/186/EEC/Add.12 
Page 24  
 
  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  1.8 SUBSIDY
 FOR  EMPLOYMENT  OF PEOPLE  WITH  DISABILITIES 
1. Title of the subsidy program  
  Labour Market Fund  2. Period covered by the notification
 
 
 2007  3. Policy objective and / or purpose of the subsidy
 
 
 Increasing employment of and creating jobs for people with disabilities. 
 4. Background and authority for the subsidy
 
  The subsidy is provided for by 19. § of the Act IV of 1991 on Job Assistance and Unemployment Benefits and the 19. § of the D ecree 6/1996.  (VII. 16.) of the Minister for 
Employment on employment subsidies and subsidy for crisis management. 
 5. Form of the subsidy
 
  The support can be provided in the form of reimbursable and/or non-reimbursable subsidy. 
 
6. To whom and how the subsidy is provided
 
  All kinds of subsidy are awarded through tender procedures.   Support may be granted for those employers who undertake i.a.: 
 
• to create new jobs for people with disabilities; 
• to restructure production or service facilities in connection with employment of 
people with disabilities; 
• to procure or transform tools and equipm ents necessary for employment of people 
with disabilities; 
• to modernize workplaces and working tools in  favour of employment of people with 
disabilities; 
• to invest in order to create, modernize or develop workplaces in favour of 
employment of people with disabilities. 
 The employment obligation of the employer is 3 years in the first and the last case, otherwise 
2 years.   G/SCM/N/186/EEC/Add.12 
 Page 25 
 
 
  7. Subsidy per unit or the total amount  
  The total amount accounted for HUF 2000 million.  8. Duration of the subsidy
 
 
 No explicit time limit is attached to this program.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A. 
 1.9 CO-FINANCED
 SUBSIDY  PROGRAMMES 
1.9.1 ECONOMIC DEVELOPMENT OPERATIONAL PROGRAMME 
1. Title of the subsidy programme  
 
 Economic Development Operational Programme 
 2. Period covered by the notification
 
  2007 
 
3. Policy objective and/or purpose of the subsidy
 
  Overall objectives:  
 Achievement long term growth of the Hunga rian economy by improving the quality of 
physical and human capital, as well as of total factor productivity.  Specific objectives have been selected to strengthen growth factors:  
• increase R & D and innovation capacity, activity, as well as cooperation; 
• complex development of corporate capacities; 
• development of the business environment; 
• facilitate SMEs' access to financing resources. 
 
4. Background and authority for the subsidy
 
  Background for the subsidy:  Council Regula tion (EC) No. 1083/2006 of 11 July 2006 laying 
down general provisions on the European Regional Development Fund, the European Social Fund and 
the Cohesion Fund and repealing Regulation (E C) No. 1260/1999, Government Decree 255/2006 
(XII. 8.) on the basic rules of the use of the ERDF , ESF and CF subsidies and responsible institutions 
in the 2007-2013 programming period. 
 5. Form of the subsidy
 
  The subsidy is in the form of repayable and non-repayable subsidy.  Repayable subsidies are 
granted from credit, guarantee and venture capital SME programmes. G/SCM/N/186/EEC/Add.12 
Page 26  
 
   
6. To whom and how the subsidy is provided
 
  Public and private enterprises with eligible development projects may receive support for the 
accomplishment of the project.  The support schemes mu st be in line with the OP aims and the EU 
state aid rules. 
  Non-repayable support may be receive d through open tender procedures. 
  Majority of repayable schemes are provi ded through financial intermediate bodies. 
 
 The subsidy may not be in excess of 25-30 per cent of the programme's total costs except for 
SMEs in convergence regions and projects in  depressed regions (up to 50 per cent). 
 7. Subsidy per unit or the total amount (the data  contains only the contribution of the Hungarian 
government)  
  The total amount accounted for HUF 0.2 billion.  8. Duration of the subsidy
 
 
 These grant schemes may not be applied after the year 2015. 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A. 
 
1.9.2 ECONOMIC COMPETITIVENESS OPERATIONAL PROGRAMME(ECOP) 
1. Title of the subsidy programme
 
  Economic Competitiveness Oper ational Programme 2004-2006 
 
2. Period covered by the notification
 
  2007  3. Policy objective and/or purpose of the subsidy
 
 
 Improvement of international competitiveness through the promotion of investments resulting in high added-value products and services and th rough the development of supplier activity • 
Development of business infrastructure in order to create attractive sites for enterprises and improve 
logistic capacities.  
 ECOP sets the following priority target fields: 
 
• the increase of the small and medium-siz ed enterprises' contribution to economic 
performance, and the relief of the dual ch aracter of the Hungarian economy.  To 
achieve this, it focuses on:  the promo tion of the competitiveness of small and 
medium-sized enterprises;  improving SMEs access to information necessary for 
growth;  the creation and reinforcemen t of co-operation between enterprises.  G/SCM/N/186/EEC/Add.12 
 Page 27 
 
 
  • Research & Development, Innovation.  To achieve this, it focuses on:  Improvement 
of the efficiency of R&D and innovation;  reinforcement of research based on the co-
operation between the academic and corporate sector serving to enhance competitiveness and sustainable growth potential;  expansion of business R&D 
activity. 
• Development of the information society and E-Economy.  To achieve this, it focuses 
on:  Spreading the use of modern IT based business solutions systems among small and medium-sized enterprises;  Increasi ng the production and accessibility of digital 
content;  Expansion of client-oriented e- administration to provide complex business 
services;  Enhancing broadband internet access. 
4. Background and authority for the subsidy
 
 
 Background:  Council Regulation (EC) No. 126 0/1999 of 21 June 1999 laying down general 
provisions on the Structural Funds, Joint Minister ial Decree 14/2004.  (VIII. 13) on the general rules 
of the use of the structural funds and the Cohesion Fund.  5. Form of the subsidy
 
 
 The subsidy is granted from non-repayable support schemes.  6. To whom and how the subsidy is provided
 
  Public and private enterprises with eligible development projects may receive support for the 
accomplishment of the project.  The support schemes mu st be in line with the OP aims and the EU 
state aid rules.   Non-repayable support may be receive d through open tender procedures. 
 
 The typical subsidy may not be in excess of 40 pe r cent of the total eligible costs except for 
R&D projects where it could have been higher.  The average contribution of the Hungarian government was around 34 per cent.  7. Subsidy per unit or the total amount (the data  contains only the contribution of the Hungarian 
government)  
  The total amount accounted for HUF 11 billion.  8. Duration of the subsidy
 
 
 These grant schemes may not be applied after the year 2008. 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A. 
 G/SCM/N/186/EEC/Add.12 
Page 28  
 
  1.9.3 ENVIRONMENTAL PROTECTION AND INFRASTRUCTURE OPERATIONAL 
PROGRAMME (EPIOP) 
1. Title of the subsidy programme
 
  Environmental Protection and Infrastructure Operational Programme 2004-2006 
 
2. Period covered by the notification
 
  2007  
3. Policy objective and/or purpose of the subsidy
 
 
− Protection and improvement of the environment.  The main factors are: 
 
a. the quality and coverage of envi ronmental services and utilities; 
b. nature conservation;  and 
c. energy initiatives. 
 
− Improvement of the transport network through investments into upgrading the 
national transport infrastructure. 
 
4. Background and authority for the subsidy  
  Background:  Council Regulation (EC) No. 126 0/1999 of 21 June 1999 laying down general 
provisions on the Structural Funds, Joint Minister ial Decree 14/2004.  (VIII. 13) on the general rules 
of the use of the structural funds and the Cohesion Fund. 
 
5. Form of the subsidy
 
  The subsidy is in the form of non-repayable support schemes.  6. To whom and how the subsidy is provided
 
 
 Public and private enterprises with eligible development projects may receive support for the 
accomplishment of the project.  The support schemes must be in line with the OP aims and the 
EU state aid rules.  
 Non-repayable support may be received thro ugh open tender procedures for the purposes set 
in the application calls.   The typical subsidy may not be in excess of 75 per cent of the total eligible costs.  The average contribution of the Hungarian government was around 28 per cent.  
7. Subsidy per unit or the total amount (the data  contains only the contribution of the Hungarian 
government)  
  The total amount accounted for HUF 1 billion.  
8. Duration of the subsidy
 
  These grant schemes may not be applied after the year 2008.   G/SCM/N/186/EEC/Add.12 
 Page 29 
 
 
  9. Statistical data permitting an assessmen t of the trade effects of the subsidy  
  N.A.  1.9.4 HUMAN RESOURCES DEVELOPMENT OPERATIONAL PROGRAMME (HRDOP) 
1. Title of the subsidy programme
 
  Human Resources Development Operational Programme 2004-2006  2. Period covered by the notification
 
 
 2007  3. Policy objective and/or purpose of the subsidy
 
 
 Promoting Lifelong Learning And Workforce Adaptability: 
 
a. to promote the development of skills and competences necessary for lifelong 
learning; 
b. to strengthen the links between education, training and the economy, 
c. to improve the adaptability of the workforce through promoting adult training. 
 
4. Background and authority for the subsidy  
  Background:  Council Regulation (EC) No. 126 0/1999 of 21 June 1999 laying down general 
provisions on the Structural Funds, Joint Minister ial Decree 14/2004.  (VIII. 13) on the general rules 
of the use of the structural funds and the Cohesion Fund. 
 5. Form of the subsidy
 
  The subsidy is in the form of non-repayable support schemes.  
6. To whom and how the subsidy is provided
 
  Public and private enterprises with eligible development projects may receive support for the 
accomplishment of the project.  The support schemes must be in line with the OP aims and the 
EU state aid rules. 
 
 Non-repayable support may be received thro ugh open tender procedures for the purposes set 
in the application calls.   Typically the subsidy may not be in excess of 60 per cent of the project's total eligible costs.  
The average contribution of the Hungarian government was around 29 per cent. 
 
7. Subsidy per unit or the total amount (the data  contains only the contribution of the Hungarian 
government)  
  The total amount accounted for HUF 1 billion. 
 G/SCM/N/186/EEC/Add.12 
Page 30  
 
  8. Duration of the subsidy
 
  These grant schemes may not be applied after the year 2008.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A.  1.9.5 OPERATIONAL PROGRAMME FOR REGIONAL DEVELOPMENT (RDOP) 
1. Title of the subsidy programme
 
 
 Operational Programme for Regional Development 2004-2006 
 2. Period covered by the notification
 
 
 2007 
 3. Policy objective and/or purpose of the subsidy
 
  Developing the tourism potential of the regions by:  
 Developing tourist attractions; 
 Developing tourism-related services.  4. Background and authority for the subsidy
 
 
 Background:  Council Regulation (EC) No. 126 0/1999 of 21 June 1999 laying down general 
provisions on the Structural Funds, Joint Minister ial Decree 14/2004.  (VIII. 13) on the general rules 
of the use of the structural funds and the Cohesion Fund.  5. Form of the subsidy
 
 
 The subsidy is in the form of non-repayable support schemes. 
 6. To whom and how the subsidy is provided
 
  Public and private enterprises with eligible development projects may receive support for the 
accomplishment of the project.  The support schemes mu st be in line with the OP aims and the EU 
state aid rules.   Non-repayable support may be received thro ugh open tender procedures for the purposes set 
in the application calls.  
 The typical subsidy may not be in excess of 40 per cent of the total eligible costs.  The 
average contribution of the Hungarian government was around 28 per cent.  7. Subsidy per unit or the total amount (the data  contains only the contribution of the Hungarian 
government)  
 
 The total amount accounted for HUF 1 billion.   G/SCM/N/186/EEC/Add.12 
 Page 31 
 
 
  8. Duration of the subsidy  
  These grant schemes may not be applied after the year 2008.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A.  1.9.6 AGRICULTURE AND RURAL DEVELOPMENT OPERATIONAL PROGRAMME 
1. Title of the subsidy programme
 
 
 Agriculture and Rural Developm ent Operational Programme 2004-2006 
 2. Period covered by the notification
 
 
 2007 
 3. Policy objective and/or purpose of the subsidy
 
  Development of rural areas is focused on th e modernisation of existing production capacities 
and the setting up of new production assets that are adju sted to the size and structure of production, 
made up by viable enterprises.  As a prerequisite , environment protection a nd environmentally sound 
production procedures and the widespread appli cation of quality, food safety and hygiene 
prescriptions are connected to these developments.  On the other hand, assisting the reduction of regional differences is important for the improveme nt of the living, i.e. sustenance (employment) 
conditions of the rural population and the elevation of the extremely low rural employment ratio. 
 
4. Background and authority for the subsidy
 
  Background:  Council Regulation (EC) No. 126 0/1999 of 21 June 1999 laying down general 
provisions on the Structural Funds, Joint Minister ial Decree 14/2004.  (VIII. 13) on the general rules 
of the use of the structural funds and the Cohesion Fund. 
 
5. Form of the subsidy
 
  The subsidy is in the form of non-repayable support schemes.  
6. To whom and how the subsidy is provided
 
  Public and private enterprises with eligible development projects may receive support for the 
accomplishment of the project.  The support schemes must be in line with the OP aims and the 
EU state aid rules.  
 Non-repayable support may be received thro ugh open tender procedures for the purposes set 
in the application calls.   The typical subsidy may not be in excess of 40 per cent of the total eligible costs depending on the measure.  The average contribution of the Hungarian government was around 27 per cent. 
 G/SCM/N/186/EEC/Add.12 
Page 32  
 
  7. Subsidy per unit or the total amount (the data  contains only the contribution of the Hungarian 
government)  
  The total amount accounted for HUF 4.5 billion.  
8. Duration of the subsidy
 
  These grant schemes may not be applied after the year 2008.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A.  
2. HUNGARY 2008 
2.1 CORPORATE
 TAX  CONCESSIONS  TO ASSIST  STRUCTURAL  ADJUSTMENT  AND  
ECONOMIC  DEVELOPMENT 
2.1.1 TAX CONCESSION FOR INVESTMENTS EXCEEDING HUF 3 BILLION 
1. Title of the subsidy programme  
  Tax concession for investments exceeding HUF 3 billion.  
2. Period covered by the notification
 
  2008  3. Policy objective and/or purpose of the subsidy
 
 
 The purpose of this tax concession is to stim ulate investments in underdeveloped regions 
from a social-economic point of view and/or in c ounties having unemployment rate higher than 15 per 
cent.  4. Background and authority for the subsidy
 
 
 This tax benefit is provided for by Secti on 21 of the Act LXXXI of 1996 on the Corporate 
Tax and Dividend Tax.  5. Form of the subsidy
 
 
 The subsidy is in the form of deduction from the corporate tax.  6. To whom and how the subsidy is provided
 
  Companies with head office or premises registered in a socially-economically 
underdeveloped region and/or in a county where the unemployment rate exceeds 15 per cent, and after 
31 December 1996 began an investment of at le ast HUF 3 billion for the production of goods may 
receive a tax concession in a ten year period following the project's start up.   The above tax benefit can only be applied fo r from the second taxation year and thereafter if 
the annual average number of the staff employed exceeds by at least 100 persons the average number 
of the staff employed in the year preceding the start up.  G/SCM/N/186/EEC/Add.12 
 Page 33 
 
 
   
 The tax concession equals to the ratio of sal es revenue from manufacturing operations to the 
total sales revenue.   This tax concession can not be applied to projects commencing subsequent to 
31 December 2002. 
 7. Subsidy per unit or the total amount
 
  The amount of tax benefit is not yet available. 
 
8. Duration of the subsidy
 
  This tax concession may not be applied after the year 2011.  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  2.1.2 TAX CONCESSION FOR INVESTMENTS EXCEEDING HUF 10 BILLION 
1. Title of the subsidy programme
 
 
 Tax concession for investments exceeding HUF 10 billion.  2. Period covered by the notification
 
 
 2008 
 3. Policy objective and/or purpose of the subsidy
 
  The purpose of this tax benefit is  to promote large investments. 
 
4. Background and authority for the subsidy
 
  This tax benefit is provided for by Secti on 21 of Act LXXXI of 1996 on the Corporate Tax 
and Dividend Tax.  
5. Form of the subsidy
 
  The subsidy is in the form of deduction from the corporate tax.  6. To whom and how the subsidy is provided
 
 
 Companies that began after 31 December 1996 an investment of at least HUF 10 billion 
destined for the production of goods may receive a 100 per cent tax concession in a ten year period 
following the project's start up.   The above tax benefit can only be applied fo r if the annual average number of the staff 
employed exceeds by at least 500 persons the average number of the staff employed in the year 
preceding the start up.  G/SCM/N/186/EEC/Add.12 
Page 34  
 
   This tax concession can not be applied to projects commencing subsequent to 
31 December 2002.  7. Subsidy per unit or the total amount
 
 
 The amount of tax benefit is not yet available. 
 8. Duration of the subsidy
 
  This tax concession may not be applied after the year 2011. 
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  
2.1.3 TAX CONCESSION RELATED TO INVESTMENTS 
1. Title of the subsidy programme
 
  Tax concession related to investments.  2. Period covered by the notification
 
 
 2008  3. Policy objective and/or purpose of the subsidy
 
 
 The objective of this scheme is to promote deve lopment activities by corporations of a certain 
importance whose investment projects result in the manufacturing of up-to-date and environment 
friendly products and thereby increasing their sales and/or creating new jobs.  4. Background and authority for the subsidy
 
 
 This tax concession has been provided for by Section 14/A., paragraph (2) of Act LXXXVI of 
1991 on the Corporate Tax, and Decree 90/1994 (VI.8)  of the Government on Certain Corporate Tax 
Benefits as modified by Decree 190/1994 (XII.31) of the Government on Certain Corporate Tax benefits, and Section 29, paragra ph (5), subparagraph d) of Act LXXXI of 1996 on the Corporate Tax 
and Dividend Tax. 
 
5. Form of the subsidy
 
  The subsidy is in the form of deduction from the corporate tax.  6. To whom and how the subsidy is provided
 
 
 Application for the concession could be ma de by a company (a) whose founders' equity 
exceeded HUF 500 million and (b) projected to make  investment for at least HUF 200 million that 
(c) resulted in yearly sales revenue half of which was realized from the manufacturing of environment friendly products and/or from the sales of products  that have been produced by using modern 
technologies and/or employing the results of scientific  research and (d) project ed an increase in its 
turnover or (e) the creation of new jobs.  Unde r Section 14/A. of the Corporate Tax Act the 
Government was granted discretionary power to gran t individual tax concessions to applicants that 
met the criteria referred to above.  G/SCM/N/186/EEC/Add.12 
 Page 35 
 
 
   
7. Subsidy per unit or the total amount  
  The maximum extent of the subsidy is 100 pe r cent of the corporate tax due for the first 
5 years and 60 per cent for the second period of 5 years. 
 
 The tax concession can be made use of in the form of withholding the tax out of the tax 
calculated.   The amount of tax benefit is not yet available. 
 
8. Duration of the subsidy
 
  The provisions of the Corporate Tax Act in troducing this scheme came into effect on 
1 January 1994 and lost effect on 1 January 1995.  The possibility of obta ining tax concession under 
this scheme was abolished by Section 13, paragrap h (5), subparagraph a) of Act LXXXIII of 1994 
with effect as of 1 January 1995.  However, part icular concessions grante d before that date will 
continue to be applied until their expiry date a pproved by the Government and provided that the 
criteria continue to be met.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A.  2.1.4 TAX RELIEF FOR PROJECTS OF SMALL AND MEDIUM ENTERPRISES 
1. Title of the subsidy programme
 
 
 Tax relief for projects of small and medium enterprises.  2. Period covered by the notification
 
  2008 
 
3. Policy objective and/or purpose of the subsidy
 
  The objective of this scheme is to promot e investment activities of small and medium 
enterprises. 
 
4. Background and authority for the subsidy
 
  The tax relief is provided for by Section 7, paragraph (1), subparagraphs) of Act LXXXI of 
1996 on the Corporate Tax and Dividend Tax.  
5. Form of the subsidy
 
  This subsidy is in the form of deduction from the corporate tax base. 
 6. To whom and how the subsidy is provided
 
 
 Investing small and medium enterprises, provi ded all of their members were private natural 
persons in the tax year.  G/SCM/N/186/EEC/Add.12 
Page 36  
 
  7. Subsidy per unit or the total amount
 
  The tax relief is equal to the total amount of th e project costs, but may not be higher than the 
pre-tax profit or HUF 30 million.  
 The amount of tax benefit is not yet available. 
 8. Duration of the subsidy
 
  This tax relief was introduced in 2001.  No exp licit time limit is attached to this subsidy. 
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  
2.1.5 TAX CONCESSION FOR SMALL AND MEDIUM SIZED ENTERPRISES 
1. Title of the subsidy programme
 
  Tax concession for small and medium sized enterprises.  2. Period covered by the notification
 
 
 2008  3. Policy objective and/or purpose of the subsidy
 
 
 The purpose of this tax concession is to stimulate investment activities of small and medium-
sized enterprises.  4. Background and authority for the subsidy
 
  The tax concession is provided for by Secti on 22/A of Act LXXXI of 1996 on Corporate Tax 
and Dividend Tax. 
 5. Form of the subsidy
 
  The subsidy is in the form of deduction from the corporate tax. 
 
6. To whom and how the subsidy is provided
 
  Small and medium-sized enterprises fina ncing their investments by bank loans. 
 7. Subsidy per unit or the total amount
 
 
 The tax concession is equal to 40 per cent of the interest paid on bank loans during the tax year.  The concession may not be in excess of HUF 6 million per year.   The amount of tax benefit is not yet available. 
 
8. Duration of the subsidy
 
  This tax concession was introduced in 2001.  No e xplicit time limit is attached to this subsidy.  G/SCM/N/186/EEC/Add.12 
 Page 37 
 
 
   
9. Statistical data permitting an assessmen t of the trade effects of the subsidy  
  N.A.  
2.1.6 TAX CONCESSION RELATED TO DEVELOPMENT PROJECTS 
1. Title of the subsidy programme
 
  Tax concession related to development projects.  
2. Period covered by the notification
 
  2008  3. Policy objective and/or purpose of the subsidy
 
 
 The objective of this scheme is to  stimulate investment activities. 
 4. Background and authority for the subsidy
 
  This tax concession has been provided for by Section 22/B of Act LXXXI of 1996 on the 
Corporate Tax and Dividend Tax. 
 5. Form of the subsidy
 
  The subsidy is in the form of deduction from the corporate tax. 
 
6. To whom and how the subsidy is provided
 
  Tax concession is granted to a taxpayer whose development project enta ils an investment of 
at least HUF 3 billion or HUF 1 billion if the project is started and operated in preferable regions.  The 
tax concession can be applied in the four years fo llowing the first year in which the tax concession is 
used if: 
 
(a) the average work force employed exceeds the average number of persons employed 
during the year prior to the commencement of  the project by at least 150 workers - or 
75 workers if the project is started a nd operated in preferable regions;  or 
 
(b) if the taxpayer's annualized wage costs ar e at least 600 times greater than the amount 
of the minimum wage effective on the first day of the tax year as calculated for the tax year - or at least 300 times greater if the project is launched and operated in preferable regions - as compared to the annualized wage  costs of the year preceding the year in 
which the project commenced. 
 
Tax concession is granted for: 
 
(a) development projects with a value of at least HUF 100 million, if it constitutes the 
launch and operation of an independent environmental protection project or a 
wideband Internet service or a food facility  project or a basic research, applied 
research and experimental development or  a motion picture and video production 
project; 
 G/SCM/N/186/EEC/Add.12 
Page 38  
 
  (b) development projects with a value of at least HUF 100 million, if these projects have 
been financed by newly issued shares a nd the relevant joint-stock company is 
registered at the stock exchange; 
 
(c) projects serving to create new jobs. 
 
 Tax concession for projects serving to create new jobs is granted if during the four years subsequent to the third tax year following the first year in which the tax allowance is used: 
 
(a) at least 20 per cent of the total workfo rce hired for the new jobs created under the 
development programme are new entran ts in the labour market;  and 
 
(b) the average work force employed exceeds the average number of persons employed 
during the year prior to the commencement of the project by at least 300 workers (150 workers for medium-sized enterprises,  30 workers for small enterprises), or 
150 workers (75 workers for medium-siz ed enterprises, 15 workers for small 
enterprises) if the project is started and ope rated in preferable regions, or 20 workers 
(5 workers for small and medium-sized enterprises) if the project is started and operated in any one of the 48 micro-re gions deemed most underprivileged. 
 7. Subsidy per unit or the total amount
 
 
 The support granted to a specific developmen t project may not be higher than the amount 
computed by the ratio stipulated in the legi slation from the total cost of the project. 
  The tax concession may be claimed up to 80 per cent of the corporate income tax otherwise 
payable. 
  The amount of tax benefit is not yet available.  8. Duration of the subsidy
 
 
 The tax concession may be applied for ten years. 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A. 
 
2.1.7 TAX RELIEF FOR INTELLECTUAL PRODUCTS 
1. Title of the subsidy programme
 
  Tax relief for intellectual products.  
2. Period covered by the notification
 
  2008  3. Policy objective and/or purpose of the subsidy
 
 
 The objective of this scheme is to promote intellectual activities.   G/SCM/N/186/EEC/Add.12 
 Page 39 
 
 
  4. Background and authority for the subsidy  
  This tax relief has been provided for by Section 7, paragraph (1), subparagraphs) of 
Act LXXXI of 1996 on the Corporate Tax and Dividend Tax.  
5. Form of the subsidy
 
  This subsidy is in the form of deduction from the corporate tax base. 
 6. To whom and how the subsidy is provided
 
 
 Small and medium-sized enterprises.  7. Subsidy per unit or the total amount
 
 
 The tax relief is equal to the expenses incurre d in connection with the acquisition of rights in 
Hungary of a patent, consumer or  industrial design and consumer or  industrial design protection right. 
  The amount of tax benefit is not yet available.  8. Duration of the subsidy
 
 
 This tax relief was introduced in 2005.  No exp licit time limit is attached to this subsidy. 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A. 
 2.1.8 TAX RELIEF FOR EMPLOYMENT 
1. Title of the subsidy programme
 
  Tax relief for employment. 
 
2. Period covered by the notification
 
  2008  
3. Policy objective and/or purpose of the subsidy
 
  The objective of this scheme is to promote employment.  4. Background and authority for the subsidy
 
 
 This tax relief has been provided for by S ection 7, paragraph (1), subparagraph y) of 
Act LXXXI of 1996 on the Corporate Tax and Dividend Tax.  5. Form of the subsidy
 
 
 This subsidy is in the form of deduction from the corporate tax base. 
 G/SCM/N/186/EEC/Add.12 
Page 40  
 
  6. To whom and how the subsidy is provided
 
  Micro enterprises with no more than five employees.  7. Subsidy per unit or the total amount
 
 
 The tax relief is equal to the sum recei ved by multiplying the minimum wage by any 
increment in the average number of employees in comp arison to the previous tax year.  This tax relief 
can be applied if the taxpayer has no tax debts.  
 The amount of tax benefit is not yet available. 
 8. Duration of the subsidy
 
  This tax relief was introduced in 2005.  No exp licit time limit is attached to this subsidy. 
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  2.1.9 TAX CONCESSION FOR SOFTWARE DEVELOPERS 
1. Title of the subsidy programme
 
  Tax concession for software developers.  2. Period covered by the notification
 
 
 2008  3. Policy objective and/or purpose of the subsidy
 
  The objective of this scheme is to stimulate the employment of software developers in small 
and medium-sized enterprises. 
 4. Background and authority for the subsidy
 
  This tax concession has been provided for by Section 22, paragraph ( 10) of Act LXXXI of 
1996 on the Corporate Tax and Dividend Tax. 
 5.  Form of the subsidy
 
  The subsidy is in the form of deduction from the corporate tax.  
6. To whom and how the subsidy is provided
 
  Small and medium-sized enterprises employing software developers.   G/SCM/N/186/EEC/Add.12 
 Page 41 
 
 
  7. Subsidy per unit or the total amount  
  Small and medium-sized enterprises are entitle d to a tax concession of  15 per cent of the 
wages and salaries paid to a software developer during the tax year.  The tax concession can be 
claimed during the tax year and the following three tax years in equal instalments. 
 
 The amount of tax benefit is not yet available.  8. Duration of the subsidy
 
 
 This tax concession was introduced in 2006.  No e xplicit time limit is attached to this subsidy. 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A. 
 
2.1.10  PREFERENTIAL TAX RATE 
1. Title of the subsidy programme
 
  Preferential tax rate.  
2. Period covered by the notification
 
  2008  3. Policy objective and/or purpose of the subsidy
 
 
 The programme is intended to reduce tax burden for smaller companies.  4. Background and authority for the subsidy
 
  This tax benefit is provided for by Section 19, paragraphs (2)-(6) of Act LXXXI of 1996 on 
the Corporate Tax and Dividend Tax. 
 5. Form of the subsidy
 
  The subsidy is in the form of reduced corporate tax rate. 
 
6. To whom and how the subsidy is provided
 
  For the preferential tax rate, the taxpayer can not make use of any tax incentives, it must 
employ at least one employee in the tax year, it has to  pay social security contributions with respect to 
each of its employees in an amount which equals at least 2 times the contributions payable on the 
minimum wage (in disadvantaged regions only up to the amount payable on the minimum wage), it 
has to pay corporate income tax at least on the b asis of minimum income/tax base and it must fulfil 
legal requirements related to the employment.  7. Subsidy per unit or the total amount
 
 
 A preferential tax rate of 10 per cent is appli cable to the part of the tax base which does not 
exceed HUF 50 million, while any excess profits are ta xable at the general 16 per cent rate.  The tax G/SCM/N/186/EEC/Add.12 
Page 42  
 
  benefit from the use of preferential 10 per cent rate must be used for investments or employment or 
repayment of business credits.   The amount of tax benefit is not yet available.  
8. Duration of the subsidy
 
  This regime was introduced in 2006.  No exp licit time limit is attached to this subsidy. 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A.  2.1.11  TAX RELIEF FOR RESEARCH AND DEVELOPMENT 
1. Title of the subsidy programme
 
 
 Tax relief for research and development.  2. Period covered by the notification
 
  2008 
 
3. Policy objective and/or purpose of the subsidy
 
  The objective of this scheme is to promote the R and D activity.  
4. Background and authority for the subsidy
 
  The tax relief is provided for by Section 7, paragraph (1), subparagraph t), and 
paragraphs (17) and (18) of  Act LXXXI of 1996 on the Corporate Tax and Dividend Tax. 
 5. Form of the subsidy
 
 
 This subsidy is in the form of deduction from the corporate tax base. 
 6. To whom and how the subsidy is provided
 
 
 Taxpayers having written contract for common basic research, applied research or 
experimental development projects with a research  institution founded by an institution of higher 
education and/or the Hungarian Academy of Sciences may claim three times the general tax relief, or 
maximum HUF 50 million.  7. Subsidy per unit or the total amount
 
 
 The tax relief is equal to the direct costs of basic research, applied research and experimental 
development incurred.  Any support or assistance received for development purposes can not be taken 
into account.  
 The amount of tax benefit is not yet available. 
  G/SCM/N/186/EEC/Add.12 
 Page 43 
 
 
  8. Duration of the subsidy  
  This tax relief was introduced in 1997.  No exp licit time limit is attached to this subsidy. 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A.  2.1.12  TAX CONCESSION FOR FILM PRODUCTION 
1. Title of the subsidy programme
 
 
 Tax concession for film production.  2. Period covered by the notification
 
 
 2008 
 3. Policy objective and/or purpose of the subsidy
 
  The purpose of this tax concession is to stimulate film production.  
4. Background and authority for the subsidy
 
  The tax concession is provided for by Section 22, paragraphs (1) and (3) of Act LXXXI of 
1996 on Corporate Tax and Dividend Tax.  
5. Form of the subsidy
 
  The subsidy is in the form of deduction from the corporate tax.  6. To whom and how the subsidy is provided
 
 
 Taxpayers sponsoring film productions. 
 7. Subsidy per unit or the total amount
 
  The tax concession is equal to the amount dona ted for film production.  The tax concession 
can be applied during four years. 
  The tax concession may be claimed up to 70 per cent of the corporate income tax otherwise payable.   The amount of tax benefit is not yet available. 
 
8. Duration of the subsidy
 
  This tax concession was introduced in 1 April 2004.  No explicit time limit is attached to this 
subsidy. 
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A. G/SCM/N/186/EEC/Add.12 
Page 44  
 
   
2.1.13  ACCELERATED DEPRECIATION FOR SMALL AND MEDIUM-SIZED ENTERPRISES 
1. Title of the subsidy programme
 
  Accelerated depreciation for small and medium-sized enterprises. 
 
2. Period covered by the notification
 
  2008  
3. Policy objective and/or purpose of the subsidy
 
  The objective of this scheme is to promote investment activities.  4. Background and authority for the subsidy
 
 
 This tax relief has been provided for by A nnex 1, point 14 of Act LXXXI of 1996 on the 
Corporate Tax and Dividend Tax.  5. Form of the subsidy
 
 
 This subsidy is in the form of deduction from the corporate tax base. 
 6. To whom and how the subsidy is provided
 
  Small and medium-sized enterprises maki ng investments in underdeveloped regions. 
 
7. Subsidy per unit or the total amount
 
  Small and medium-sized enterprises may clai m 100 per cent depreciation on the value of 
machinery, equipment and vehicles (except passenger cars), which have never been used previously, 
if these tangible assets are used in any one of the 48 micro-regions deemed most underprivileged. 
 
 The amount of tax benefit is not yet available.  8. Duration of the subsidy
 
 
 This tax relief was introduced in 10 May 2005.  No explicit time limit is attached to this 
subsidy.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A. 
  G/SCM/N/186/EEC/Add.12 
 Page 45 
 
 
  2.1.14  TAX RELIEF FOR CAPITAL GAINS FROM REGISTERED SHARES 
1. Title of the subsidy programme  
  Tax relief for capital gains from registered shares.  
2. Period covered by the notification
 
  2008  3. Policy objective and/or purpose of the subsidy
 
 
 The objective of this scheme is to promote the capital market.  4. Background and authority for the subsidy
 
 
 The tax relief is provided for by Section 7, paragraph (1), subparagraphs) of Act LXXXI of 
1996 on the Corporate Tax and Dividend Tax.  5. Form of the subsidy
 
  This subsidy is in the form of deduction from the corporate tax base. 
 
6. To whom and how the subsidy is provided
 
  Taxpayers transferring so-called registered shares can enjoy this tax benef it.  This tax benefit 
can apply on shares which represent at least a 30 pe r cent participation in an economic agent provided 
that shares in question are registered at the tax authority. 
 7. Subsidy per unit or the total amount
 
  The tax relief is equal to the capital gains from th e transfer of registered shares.  For the tax 
benefit, the taxpayer must hold registered shares co ntinuously for more than one year prior to the 
transaction. 
  The amount of tax benefit is not yet available.  8. Duration of the subsidy
 
 
 This tax relief was introduced in 2007.  No exp licit time limit is attached to this subsidy. 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A. 
 G/SCM/N/186/EEC/Add.12 
Page 46  
 
  2.2 RESEARCH
 AND  TECHNICAL  INNOVATION  FUND 
1. Title of the subsidy programme  
  Innovation Fund for R esearch and Technology 
 
2. Period covered by the notification
 
  2008  3. Policy objective and/or purpose of the subsidy
 
 
 The Fund is intended to improve the competitiveness and innovation performance of the Hungarian economy.  Its main objectives are:  
• to increase and concentrate the innovation activity of the enterprises with the 
emphasis on utilisation of innovative, marketable and competitive products; 
• to increase the regional innovation capacity; 
• to increase the cooperation between the resea rch and industrial pr oduction sphere by 
improving the conditions of innovation environment. 
4. Background and authority for the subsidy
 
  Act XC of 2003 on Innovation Fund for Research and Technology.  Act CXXXIV of 2004 on Research, Deve lopment and Technol ogical Innovation. 
 
5. Form of the subsidy
 
  Grant  6. To whom and how the subsidy is provided
 
 
 Public and private research entities, en terprises, non-profit organisations and common 
projects conducted by companies in consortia with  public/university laboratories may receive the 
support.  
 Support from the Fund may be received through open tender procedures for the purposes set 
in the Act.  7. Subsidy per unit or the total amount
 
  Payments under this programme amounted to HUF 45 billion. 
 
8. Duration of the subsidy
 
  No explicit time limit is attached to the programme.  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.   G/SCM/N/186/EEC/Add.12 
 Page 47 
 
 
  2.3 BUDGETARY  SCHEME  EARMARKED  FOR  NATIONAL  INVESTMENT  PROMOTION 
1. Title of the subsidy programme  
  Budgetary scheme earmarked for National Investment Promotion. 
 
2. Period covered by the notification
 
  2008  3. Policy objective and/or purpose of the subsidy
 
 
 The scheme is designed to assist the realis ation of national economic and investment 
promotion policy objectives in compliance with Hunga ry's obligations under EU  law and international 
agreements by promoting i.a.:  
• foreign direct investment in Hungary; 
• establishment of quality assurance and certification systems necessary for the 
introduction of products into foreign markets; 
• regional development; 
• participation in international aid programmes; 
• information and PR activities bringing about investment incentives; 
• enhancement of the suppliers' competitiveness in particular SMEs; 
• financing of measures to protect consumers; 
• establishment of market monitoring systems; 
• development of human resources; 
• modernization of technologies; 
• realisation of logistic centres and services; 
• enhancement of innovation and R+D; 
• establishment and development of enterp rise 'incubator houses', support the use of 
their services; 
• promote the cooperation among enterprises; 
• promote the investments in Stock Exchange market. 
4. Background and authority for the subsidy
 
 
 Annual Act on state budget, Decree 6/2008 (III.  7.) of the Minister of Economy and 
Transport. G/SCM/N/186/EEC/Add.12 
Page 48  
 
   
5. Form of the subsidy
 
 The subsidy can be provided for in the form  of grant, and interest rate support. 
 
6. To whom and how the subsidy is provided
 
  Domestic legal persons, economic corpora tions without legal personality, self-employed 
persons, cooperatives, professional as sociations, Chamber of Trade a nd Industry, natural persons of 
Hungarian citizenship, public benefit companies, local governments. 
 
 All kinds of subsidy are aw arded through tender procedures.  The upper limit of support is 
specified in the call for tender.  At least 25 per cen t of the project cost should be financed from own 
source.  
7. Subsidy per unit or the total amount
 
  The total amount accounted for HUF 1,511 billion.  8. Duration of the subsidy
 
 
 No explicit time limit is attached to the programme. 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A. 
 
2.4 BUDGETARY
 SCHEME  EARMARKED  FOR  INVESTMENT  PROMOTION 
1. Title of the subsidy programme  
  Budgetary scheme earmarked for investment promotion.  
2. Period covered by the notification
 
  2008  3. Policy objective and/or purpose of the subsidy
 
 
 The scheme is designed to assist the realiza tion of strategic investment in manufacturing 
industry, creation of R+D investments, logistic cen tres and projects in tourist sector in compliance 
with Hungary's obligations under EU law and in ternational agreements by promoting i.a.: 
 
• enhancement of the international competitiveness; 
• acceleration of industrial restructuring; 
• development of technologies; 
• foreign direct investments of strategic investors; 
• creation of regional service centres;  G/SCM/N/186/EEC/Add.12 
 Page 49 
 
 
  • establishment of R+D investments; 
• realization of investments in tourism sector; 
• realisation of logistic centres and development of their services, realisation of logistic 
service centres and capacities – in particul ar SMEs – supporting logistic activities. 
4. Background and authority for the subsidy  
  Annual Act on state budget, Decree 8/2007 (I. 24.)  of the Minister of Economy and Transport. 
 
5. Form of the subsidy
 
  The subsidy is be provided in the form of grant.  6. To whom and how the subsidy is provided
 
 
 Domestic legal persons, economic corpora tions without legal personality, European 
Companies, European Cooperatives registered in Hungary.   Subsidy is awarded on the basis of the Government decision.  The upper limit of support is in 
accordance with the maximum aid in tensity specified in 85/2004.  (IV 19) Government Decree.  At 
least 40 per cent of the project cost should be financed from own source.  7. Subsidy per unit or the total amount
 
 
 The total amount accounted for HUF 24,286 billion. 
 8. Duration of the subsidy
 
  No explicit time limit is attached to the programme.  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  2.5 MINING
 CONVERSION  PROGRAMME 
1. Title of the subsidy programme  
  Mining conversion programme.  2. Period covered by the notification
 
 
 2008 
 3. Policy objective and/or purpose of the subsidy
 
  The assistance is intended to address major social problems stemming from structural 
adjustment in the sector and the need of ensu ring progressive and orderly reduction of mining. 
 G/SCM/N/186/EEC/Add.12 
Page 50  
 
  4. Background and authority for the subsidy
 
  Annual state budget, Decree 55/2008 (III. 26.) Korm. of the Government.  5. Form of the subsidy
 
 
 Grant.  6. To whom and how the subsidy is provided
 
 
 Aid is granted by the government to specific mining companies on the basis of either the Act 
on State Budget or within its own discretionary power.  7. Subsidy per unit or the total amount
 
 
 The support accounted for HUF 1 billion. 
 8. Duration of the subsidy
 
  No explicit time limit is attached to this programme.  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  2.6 BUDGETARY
 SCHEME  EARMARKED  FOR  THE  DEVELOPMENT  OF SMALL  AND  
MEDIUM  SIZED  ENTERPRISES 
1. Title of the subsidy programme  
  Budgetary scheme earmarked for the developm ent of small and medium sized enterprises. 
 2. Period covered by the notification
 
 
 2008  3. Policy objective and / or purpose of the subsidy
 
 
 The scheme is designed to help SMEs over come disadvantages inherent in their size. 
 4. Background and authority for the subsidy
 
  The subsidy is provided for by the Act XXXI V of 2004 on the Small and Medium Sized 
Enterprises and on the Support of their Developm ent, the acts on annual state budgets and the 
Decree 19/2005.  (II. 27.) of the Minister for Ec onomy and Transport and the Decree 19/2008.  (X. 8.) 
of the Minister for National Development and Economy.  5. Form of the subsidy
 
 
 The support can be provided for in the form of  grant, interest rate support, preferential 
guarantee fee.   G/SCM/N/186/EEC/Add.12 
 Page 51 
 
 
  6. To whom and how the subsidy is provided  
  All kinds of subsidy are awarde d through tender procedures, targeted directly or indirectly to 
micro, small or medium-sized enterprises (SMEs).  
 Support may be granted for programmes whose purpose is i.a.: 
 
• to help SMEs managing liquidity and financing working capital; 
• to attain entrepreneurial knowledge, or to develop entrepreneurial culture and 
managerial qualities. 
 The subsidy may not be in excess of 50 per cent of the programme's total costs except for 
depressed counties where the ceiling is 65 per cent. 
 
7. Subsidy per unit or the total amount
 
  The total amount accounted for HUF 2 628 million.  
8. Duration of the subsidy
 
  No explicit time limit is attached to this programme.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A. 
 2.7 SUBSIDY
 FOR  JOB  CREATION 
1. Title of the subsidy program  
 
 Labour Market Fund 
 2. Period covered by the notification
 
  2008 
 
3. Policy objective and / or purpose of the subsidy
 
  Promoting creation of new jobs through investments.  4. Background and authority for the subsidy
 
 
 The subsidy is provided for by 18. § of the Act IV of 1991 on Job Assistance and Unemployment Benefits and the 18. § of the D ecree 6/1996.  (VII. 16.) of the Minister for 
Employment on employment subsidies and subsidy for crisis management. 
 
5. Form of the subsidy
 
  Non-reimbursable subsidy.  G/SCM/N/186/EEC/Add.12 
Page 52  
 
  6. To whom and how the subsidy is provided
 
  All kinds of subsidy are aw arded through tender procedures.  At least 25 per cent of the 
expenditure of investment must be financed from own source.  
 Support may be granted for those employers who create new jobs, connected to investment.  
Support may be granted for those employers who undertake to:  
• realize the investment in a year after its initiation; 
• sustain and operate capacities and services pr oduced by the investment continuously 
at least for 5 years in accordance of the original purpose, (for SMEs at least for 
3 years);  and 
• maintain the employee number indicated in the application at least 3 years after hiring 
them (for SMEs at least 2 years). 
 The subsidy may not be in excess of 25-50 per cent of the programme's total costs depending 
on the regional classification.  This upper limit can  be increased by 20 per cent for small enterprises, 
and by 10 per cent for medium sized enterprises.  
7. Subsidy per unit or the total amount
 
  The total amount accounted for HUF 1 500 million.  8. Duration of the subsidy
 
 
 No explicit time limit is attached to this program.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A. 
 
2.8 EMPLOYMENT
 SUBSIDY  OF PEOPLE  WITH  DISABILITIES 
1. Title of the subsidy program  
  Labour Market Fund 
 
2. Period covered by the notification
 
  2008  3. Policy objective and / or purpose of the subsidy
 
 
 Increasing of employment and jobs of people with disabilities.  4. Background and authority for the subsidy
 
 
 The subsidy is provided for by 19. § of the Act IV of 1991 on Job Assistance and 
Unemployment Benefits and the 19. § of the D ecree 6/1996.  (VII. 16.) of the Minister for 
Employment on employment subsidies and subsidy for crisis management. 
  G/SCM/N/186/EEC/Add.12 
 Page 53 
 
 
  5. Form of the subsidy  
  The support can be provided in the form of reimbursable and/or non-reimbursable subsidy. 
 6. To whom and how the subsidy is provided
 
 
 All kinds of subsidy are awarded through tender procedures.   Support may be granted for those employers who undertake i.a.:  
• to create new jobs; 
• to restructure production or service facilities in connection with employment of 
people with disabilities; 
• to procure or transform tools and equipm ents necessary for employment of people 
with disabilities; 
• to modernize workplaces and working tools in  favour of employment of people with 
disabilities; 
• to invest in order to create, modernize or develop workplaces in favour of 
employment of people with disabilities. 
 The employment obligation of the employer is 3 years in the first and the last case, otherwise 
2 years. 
 7. Subsidy per unit or the total amount
 
  The total amount accounted for HUF 3 000 million. 
 
8. Duration of the subsidy
 
  No explicit time limit is attached to this program.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A.  2.9 CO-FINANCED
 SUBSIDY  PROGRAMMES 
2.9.1 ECONOMIC DEVELOPMENT OPERATIONAL PROGRAMME (EDOP) 
1. Title of the subsidy programme  
  Economic Development Operational Programme 
 2. Period covered by the notification
 
 
 2008  G/SCM/N/186/EEC/Add.12 
Page 54  
 
  3. Policy objective and/or purpose of the subsidy
 
  Overall objectives:   Achievement long term growth of the Hunga rian economy by improving the quality of 
physical and human capital, as well as of total factor productivity.  Specific objectives have been 
selected to strengthen growth factors:  
• increase R & D and innovation capacity, activity, as well as cooperation; 
• complex development of corporate capacities; 
• development of the business environment; 
• facilitate SMEs' access to financing resources. 
4. Background and authority for the subsidy
 
 
 Background for the subsidy:  Council Regula tion (EC) No. 1083/2006 of 11 July 2006 laying 
down general provisions on the European Regional Development Fund, the European Social Fund and 
the Cohesion Fund and repealing Regulation (E C) No. 1260/1999, Government Decree 255/2006 
(XII. 8.) on the basic rules of the use of the ERDF , ESF and CF subsidies and responsible institutions 
in the 2007-2013 programming period. 
 
5. Form of the subsidy  
 The subsidy is in the form of repayable and non-re payable subsidy.  Repayable subsidies are granted 
from credit, guarantee and venture capital SME programmes. 
 
6. To whom and how the subsidy is provided
 
  Public and private enterprises with eligible development projects may receive support for the 
accomplishment of the project.  The support schemes mu st be in line with the OP aims and the EU 
state aid rules. 
 
 Non-repayable support may be receive d through open tender procedures. 
  Majority of repayable schemes are provi ded through financial intermediate bodies. 
 
 The subsidy may not be in excess of 25-30 per cent of the programme's total costs except for 
SMEs in convergence regions and projects in depressed regions (up to 50per cent). 
 7. Subsidy per unit or the total amount (the data  contains only the contribution of the Hungarian 
government)  
 
 Total payments to enterprises was HUF 6.1 billion. 
 8. Duration of the subsidy
 
  These grant schemes may not be applied after the year 2015. 
  G/SCM/N/186/EEC/Add.12 
 Page 55 
 
 
  9. Statistical data permitting an assessmen t of the trade effects of the subsidy  
  N.A.  2.9.2 CENTRAL HUNGARY OPERATIONAL PROGRAMME (CHOP) 
1. Title of the subsidy programme
 
  Central Hungary Operational Programme  2. Period covered by the notification
 
 
 2008  3. Policy objective and/or purpose of the subsidy
 
 
 The overall objective of the operational prog ramme is to improve the international 
competitiveness of the Central Hungary Region, observi ng the principle of sustainable development.  
Two specific development objectives have been set, wh ich are in line with the main objectives of the 
Lisbon National Reform Programme and the New H ungary Development Plan:  to develop factors 
influencing the Region's competitiveness, and to develop the Region's internal cohesion and the 
harmony of its spatial structure.  The main factors are: 
 
(a) Strengthening R and D and innovation activities in the region. 
 
(b) Improvement of the operational efficiency  of businesses operating in the region, with 
a view to raising their competitiveness. 
 
(c) Development of activities with high gr owth potential and high added value. 
 4. Background and authority for the subsidy
 
  Background for the subsidy:  Council Regula tion (EC) No. 1083/2006 of 11 July 2006 laying 
down general provisions on the European Regional Development Fund, the European Social Fund and 
the Cohesion Fund and repealing Regulation (E C) No. 1260/1999, Government Decree 255/2006 
(XII. 8.) on the basic rules of the use of the ERDF , ESF and CF subsidies and responsible institutions 
in the 2007-2013 programming period.  
5. Form of the subsidy
 
  The subsidy is granted from non-repayable support schemes.  6. To whom and how the subsidy is provided
 
 
 Public and private enterprises with eligible development projects may receive support for the 
accomplishment of the project.  The support schemes mu st be in line with the GOP aims and the EU 
state aid rules.   Non-repayable support may be receive d through open tender procedures. 
 
 Majority of repayable schemes are provi ded through financial intermediate bodies. 
  The subsidy may not be in excess of 25-30 per cent of the projects' total eligible costs. G/SCM/N/186/EEC/Add.12 
Page 56  
 
   
7. Subsidy per unit or the total amount (the data  contains only the contribution of the Hungarian 
government)  
  Total payments to enterprises was HUF 750 million (HUF 2.2 million per enterprise). 
 
8. Duration of the subsidy
 
  These grant schemes may not be applied after the year 2015.  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  2.9.3 ECONOMIC COMPETITIVENESS OPERATIONAL PROGRAMME (ECOP) 
1. Title of the subsidy programme
 
  Economic Competitiveness Oper ational Programme 2004-2006 
 2. Period covered by the notification
 
 
 2008 
 3. Policy objective and/or purpose of the subsidy
 
  Improvement of international competitiveness through the promotion of investments resulting 
in high added-value products and services and through the development of supplier activity 
Development of business infrastructure in order to create attractive sites for enterprises and improve 
logistic capacities.  
• ECOP sets the following priority target fields: 
• the increase of the small and medium-siz ed enterprises' contribution to economic 
performance, and the relief of the dual ch aracter of the Hungarian economy.  To 
achieve this, it focuses on:  the promo tion of the competitiveness of small and 
medium-sized enterprises;  improving SMEs access to information necessary for growth;  the creation and reinforcemen t of co-operation between enterprises. 
• Research & Development, Innovation.  To achieve this, it focuses on:  Improvement 
of the efficiency of R&D and innovation;  reinforcement of research based on the co-
operation between the academic and corporate sector serving to enhance competitiveness and sustainable growth potential;  expansion of business R&D 
activity. 
• Development of the information society and E-Economy.  To achieve this, it focuses 
on:  Spreading the use of modern IT based business solutions systems among small and medium-sized enterprises;  Increasi ng the production and accessibility of digital 
content;  Expansion of client-oriented e- administration to provide complex business 
services;  Enhancing broadband internet access.  G/SCM/N/186/EEC/Add.12 
 Page 57 
 
 
  4. Background and authority for the subsidy  
  Background:  Council Regulation (EC) No. 126 0/1999 of 21 June 1999 laying down general 
provisions on the Structural Funds, Joint Minister ial Decree 14/2004.  (VIII. 13) on the general rules 
of the use of the structural funds and the Cohesion Fund. 
 
5. Form of the subsidy
 
  The subsidy is granted from non-repayable support schemes.  
6. To whom and how the subsidy is provided
 
  Public and private enterprises with eligible development projects may receive support for the 
accomplishment of the project.  The support schemes mu st be in line with the OP aims and the EU 
state aid rules. 
 
 Non-repayable support may be receive d through open tender procedures. 
  The typical subsidy may not be in excess of 40 pe r cent of the total eligible costs except for 
R&D projects where it could have been higher.  The average contribution of the Hungarian government was around 34 per cent. 
 
7. Subsidy per unit or the total amount (the data  contains only the contribution of the Hungarian 
government)  
  Total payments to enterprises was HUF 3 billion. 
 
8. Duration of the subsidy
 
  These grant schemes may not be applied after the year 2008.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A.  2.9.4 ENVIRONMENTAL PROTECTION AND INFRASTRUCTURE OPERATIONAL 
PROGRAMME (EPIOP) 
1. Title of the subsidy programme
 
  Environmental Protection and Infrastructure Operational Programme 2004-2006  2. Period covered by the notification
 
 
 2008 
 G/SCM/N/186/EEC/Add.12 
Page 58  
 
  3. Policy objective and/or purpose of the subsidy
 
 
− Protection and improvement of the environment.  The main factors are: 
 
• the quality and coverage of envi ronmental services and utilities; 
• nature conservation;   and 
• energy initiatives. 
− The improvement of the transport networ k through investments into upgrading the 
national transport infrastructure. 
 
4. Background and authority for the subsidy  
  Background:  Council Regulation (EC) No. 126 0/1999 of 21 June 1999 laying down general 
provisions on the Structural Funds, Joint Minister ial Decree 14/2004.  (VIII. 13) on the general rules 
of the use of the structural funds and the Cohesion Fund.  
5. Form of the subsidy
 
  The subsidy is in the form of non-repayable support schemes.  6. To whom and how the subsidy is provided
 
 
 Public and private enterprises with eligible development projects may receive support for the 
accomplishment of the project.  The support schemes mu st be in line with the OP aims and the EU 
state aid rules.  
 Non-repayable support may be received thro ugh open tender procedures for the purposes set 
in the application calls.   The typical subsidy may not be in excess of 75 per cent of the total eligible costs.  The average contribution of the Hungarian government was around 28 per cent.  
7. Subsidy per unit or the total amount (the data  contains only the contribution of the Hungarian 
government)  
  Total payments to enterprises was HUF 8 billion.  
8. Duration of the subsidy
 
  These grant schemes may not be applied after the year 2008.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A. 
  G/SCM/N/186/EEC/Add.12 
 Page 59 
 
 
  2.9.5 HUMAN RESOURCES DEVELOPMENT OPERATIONAL PROGRAMME (HRDOP) 
1. Title of the subsidy programme  
  Human Resources Development Operational Programme 2004-2006  
2. Period covered by the notification
 
  2008  3. Policy objective and/or purpose of the subsidy
 
 
Promoting Lifelong Learning And Workforce Adaptability 
 
• to promote the development of skills  and competences necessary for lifelong 
learning; 
• to strengthen the links between education, training and the economy; 
• to improve the adaptability of the workforce through promoting adult training. 
 
4. Background and authority for the subsidy  
  Background:  Council Regulation (EC) No. 126 0/1999 of 21 June 1999 laying down general 
provisions on the Structural Funds, Joint Minister ial Decree 14/2004.  (VIII. 13) on the general rules 
of the use of the structural funds and the Cohesion Fund. 
 
5. Form of the subsidy
 
  The subsidy is in the form of non-repayable support schemes.  6. To whom and how the subsidy is provided
 
 
 Public and private enterprises with eligible development projects may receive support for the 
accomplishment of the project.  The support schemes mu st be in line with the OP aims and the EU 
state aid rules.  
 Non-repayable support may be received thro ugh open tender procedures for the purposes set 
in the application calls.   Typically the subsidy may not be in excess of 60 per cent of the project's total eligible costs.  
The average contribution of the Hungarian government was around 29 per cent.  
7. Subsidy per unit or the total amount (the data  contains only the contribution of the Hungarian 
government)  
  Total payments to enterprises was HUF 0.9 billion.  
8. Duration of the subsidy
 
  These grant schemes may not be applied after the year 2008.  G/SCM/N/186/EEC/Add.12 
Page 60  
 
  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  2.9.6 OPERATIONAL PROGRAMME FOR REGIONAL DEVELOPMENT (RDOP) 
1. Title of the subsidy programme
 
  Operational Programme for Regional Development 2004-2006 
 2. Period covered by the notification
 
 
 2008  3. Policy objective and/or purpose of the subsidy
 
 
 Developing the tourism potential of the regions by: 
 
• Developing tourist attractions; 
• Developing tourism-related services. 
 
4. Background and authority for the subsidy  
 
 Background:  Council Regulation (EC) No. 126 0/1999 of 21 June 1999 laying down general 
provisions on the Structural Funds, Joint Minister ial Decree 14/2004.  (VIII. 13) on the general rules 
of the use of the structural funds and the Cohesion Fund.  5. Form of the subsidy
 
 
 The subsidy is in the form of non-repayable support schemes. 
 6. To whom and how the subsidy is provided
 
  Public and private enterprises with eligible development projects may receive support for the 
accomplishment of the project.  The support schemes mu st be in line with the OP aims and the EU 
state aid rules.   Non-repayable support may be received thro ugh open tender procedures for the purposes set 
in the application calls. 
 
 The typical subsidy may not be in excess of 40 per cent of the total eligible costs.  The average contribution of the Hungarian government was around 28 per cent.  7. Subsidy per unit or the total amount (the data  contains only the contribution of the Hungarian 
government)  
 
 Total payments to enterprises was HUF 0.6 billion.  8. Duration of the subsidy
 
 
 These grant schemes may not be applied after the year 2008.  G/SCM/N/186/EEC/Add.12 
 Page 61 
 
 
   
9. Statistical data permitting an assessmen t of the trade effects of the subsidy  
  N.A.  
2.9.7 AGRICULTURE AND RURAL DEVELOPMENT OPERATIONAL PROGRAMME 
ARDOP 
1. Title of the subsidy programme
 
  Agriculture and Rural Developm ent Operational Programme 2004-2006 
 
2. Period covered by the notification
 
  2008  
3. Policy objective and/or purpose of the subsidy
 
  Development of rural areas is focused on th e modernisation of existing production capacities 
and the setting up of new production assets that are adju sted to the size and structure of production, 
made up by viable enterprises.  As a prerequisite , environment protection a nd environmentally sound 
production procedures and the widespread appli cation of quality, food safety and hygiene 
prescriptions are connected to these developments.  On the other hand, assisting the reduction of 
regional differences is important for the improveme nt of the living, i.e. sustenance (employment) 
conditions of the rural population and the elevation of the extremely low rural employment ratio. 
 4. Background and authority for the subsidy
 
 
 Background:  Council Regulation (EC) No. 126 0/1999 of 21 June 1999 laying down general 
provisions on the Structural Funds, Joint Minister ial Decree 14/2004.  (VIII. 13) on the general rules 
of the use of the structural funds and the Cohesion Fund  5. Form of the subsidy
 
 
 The subsidy is in the form of non-repayable support schemes.  6. To whom and how the subsidy is provided
 
 
 Public and private enterprises with eligible development projects may receive support for the 
accomplishment of the project.  The support schemes mu st be in line with the OP aims and the EU 
state aid rules.   Non-repayable support may be received thro ugh open tender procedures for the purposes set 
in the application calls. 
 
 The typical subsidy may not be in excess of 40 per cent of the total eligible costs depending on the measure.  The average contribution of the Hungarian government was around 27 per cent.  7. Subsidy per unit or the total amount (the data  contains only the contribution of the Hungarian 
government)  
  Total payments to enterprises was HUF 1 billion.  G/SCM/N/186/EEC/Add.12 
Page 62  
 
  8. Duration of the subsidy
 
  These grant schemes may not be applied after the year 2008.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A.  
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