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New tax incentives for business development and investment

Country of implementation
Hungary
General short description of the innovation
New tax incentives for business development and investment, which also contribute to raising the employment level. Eligibility criteria for the tax relief for business development and investments were reduced from 10 billion HUF to 3 billion (in disadvantaged regions from 3 to 1 billion). The same tax relief applies for job creation regardless of the amount of investment if at least 300 new jobs are created (150 jobs in disadvantaged regions) and at least 20 per cent of the new employees are career starters.
Target group
Total Population
Policy Field
  • general fiscal
Type of Policy
  • public
Duration of the policy
2004
Scope of innovation
  • Scope: temporary
  • Budgets: n.a.
  • Number of intended beneficiaries: n.a.
  • Spatial coverage: national
General description of (intended) objectives and strategies
The main objectives of the government with the current measure was to promote job creation and employment opportunities, and to promote adaptability to changes on the labour market so that both employers and employees can respond in a flexible way to economic challenges. The intruduced tax subsidies were serving these purposes. / (http://econ.core.hu/file/download/HLM2005/TheHungarianLabourMarket_2005_onefile.pdf, p129) /
Nature of the innovation-short-term perspective
Introduction of new tax subsidies to promote job creation and employment opportunities
Nature of the innovation-long-term perspective
The measures serve the purpose to increase flexibility and adaptability of employers and employees when facing economic challenges
Type of ideal-typical strategy for the innovation
  • others (activation/ job creation)
Type of innovation
  • retrenchment or expansion of an existing/earlier policy
New outputs
  • subsidies/tax-credits (eligibility criteria for tax subsidies for business development and investments were reduced)
Intended target group
Companies
Employers-private institutional actors
companies
Actors involved in policy-making/implementation and/or evaluation
  • central state
  • private for-profit organisations (commercial)
Intended output
  • subsidies/tax-credits (eligibility criteria for tax subsidies for business development and investments were reduced)
Did the innovation have any outcome related to job quantity?
increased job creation
Intended and unintended outcomes
n.a.
Clarification of outcomes in terms of impacting resilience and labour market inclusion
The main objectives of the government with the current measure was to promote job creation and employment opportunities, and to promote adaptability to changes on the labour market so that both employers and employees can respond in a flexible way to economic challenges. The intruduced tax subsidies were serving these purposes.
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