In this chapter you are informed what benefits your company can gain from Research and development and innovation. What tax base benefits and tax benefits you are entitled to and what tenders or bids you might apply for.
Efficiency and increasing success
Providing that part of our working hours is spent on research and development activities- even if we are not aware of it- it is worthy to realize this and get to know its background, working methods and benefits. It is obvious to claim that having all this knowledge will result in better and more effective R and D activities.
Doing research and development activities does always have some risk factors for the company. When you start it is for sure that you will have some extra costs. It is not foreseen however, whether you can predict your costs. It is possible that during operation it turns out that research and development activities will not be a technical success. You could also realize that the developed product or service could not be marketed either because it is too expensive or because your rivalry advanced you. It can also turn out that the demand of the market is not sufficient. In short, you might have costs but no income. Or your development might be successful but the product or service developed might not make you the expected profit. It is not a surprise therefore, that most people are distracted form deliberately doing research and development or innovation, however, in reality they will not avoid it.
To keep up or increase the willingness of the companies to do research and development in Hungary there are certain sources for tax benefits and tax allowances for support available from grants. Another source for support for these activities comes from the European Union.
Now we assume that once you realised that you do research and development/innovation activities anyway it is advisable to target the possible financial resources for tax benefit and allowances as well as resources of tenders in order to diminish your risks.
These include:
Tax benefits in Hungary:
a, Reducing the basis of Corporate Tax
please refer to these sections in the Hungarian law:
§
Act 1996 – LXXXI on Corporate Tax and Dividend Tax (1996)
Section 7. (1) The following shall reduce pre-tax profit:
b) Reducing the Corporate tax
§
please refer to 22/B. § on tax benefits for development
c) Reducing the base of the …. tax
§
Please refer to law 1990/C
Possible supports by proposals
The European Union as well as the Hungarian Government offers tendered support for companies and institutions to raise their motivation to do research and development as well as innovation and decrease the risks they might be exposed to. In Hungary these proposals are called within the framework of objective Science and Innovation within New Szechenyi Plan.
At present proposals co-financed by the EU and the Hungarian national budget in the framework of New Szechenyi Plan Science and Innovation calls for proposals and Proposals financed from the Research and Technological Found are available.
If you would like to have support for your R and D activities via tenders please have a look at the above mentioned websites and study the presently available call for proposals.
The European Union supports research and development and innovation within the Research and Development framework of the FP7 call. The present calls of this framework are available via the information portal of R+D of the Union in section “call”.
However, framework FP7 will be closed in 2013. Between 2014 and 2020 a new call named Horizon 2020 programme will replace it. It could pay off later if you start to prepare to target this call.
If you would like to take part in an EU proposal or you would like to join a consortium, please follow the Linked in links below.
FP-7 EU Project Partner search
FP-7 Consortium-Project-Partner-Business Idea
FP-7 Research for the benefit for SMEs
FP-7 Socio-economic Sciences and Humanities
EU Project Development Network
European Community Grants, Calls and Projects
We hope you are convinced now. If yes, please read on.
