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Tax subsidies for small enterprises for employing disabled people

Country of implementation
Hungary
General short description of the innovation
As of January 1 2004 tax relief for ?rms with less than 20 workers and employing people with disabilities increased considerably: the amount which can be deducted from the tax base doubled compared to the previous year and became equal to the amount of the minimum wage. / /
Target group
Disabled
Policy Field
  • general fiscal
Type of Policy
  • public
Duration of the policy
2004
Scope of innovation
  • Scope: structural
  • Spatial coverage: national
General description of (intended) objectives and strategies
In the short run, employment can be boosted by the labour market integration of those groups of working age that are not present on the labour market. One of these groups are persons with disabilities. As of January 1 2004 tax relief for ?rms with less than 20 workers and employing people with disabilities increased considerably: the amount which can be deducted from the tax base doubled compared to the previous year and became equal to the amount of the minimum wage. / / See article 7 (1) v) of Act CXVII. of 1995. on Personal Income Tax. / / http://econ.core.hu/file/download/HLM2005/TheHungarianLabourMarket_2005_onefile.pdf, p137 /
Nature of the innovation-short-term perspective
Increase incentive for employing people with disabilities
Nature of the innovation-long-term perspective
Boost employment by the labour market integration of those groups of working age that are not present on the labour market, like persons with disabilities.
Type of ideal-typical strategy for the innovation
  • others (job creation)
Type of innovation
  • retrenchment or expansion of an existing/earlier policy
New outputs
  • subsidies/tax-credits (tax relief for ?rms with less than 20 workers and employing people with disabilities increased)
Clarification of intended mechanisms, outputs and outcomes (optional)
Tax relief for ?rms with less than 20 workers and employing people with disabilities increased: the amount which can be deducted from the tax base doubled compared to the previous year and became equal to the amount of the minimum wage.
Intended target group
Companies, people with disabilities
Employers-private institutional actors
?rms with less than 20 workers
Actors involved in policy-making/implementation and/or evaluation
  • beneficiaries/users (disabled people)
  • employers (organised or individual) (?rms with less than 20 workers)
Intended output
  • subsidies/tax-credits (tax relief for ?rms with less than 20 workers and employing people with disabilities increased)
Did the innovation have any outcome related to job quantity?
decreased through tax reliefincreased by involving people with disabilities
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