Hungary announced and successfully notified to the European Commission a HUF 50 billion (approximately EUR 140 million) aid scheme in April 2020. The subsidy to improve competitiveness has been designed to help the medium-sized and large enterprises that are active in the manufacturing or business services sector that face difficulties due to loss of income and liquidity resulting from the economic impact of the pandemic.
Medium-sized and large companies with a setback of at least 25% in their net turnover or orders due to COVID19 can apply for the grant for new investment yet to be commenced but to be finished by 30 June 2021. As a pre-requisite, the volume of the new investment should be at least HUF 50 million (EUR 150,000) and the applicant should undertake to maintain the average staff number at least until 31 December 2020 (until the completion of the investment indicated).
In order to provide effective aid for the companies, the cash grant – once approved – is paid upfront (pre-financing) and is uniquely also available in the Budapest region.
By Balint Zsoldos, Head of Tax, KCG Partners Law Firm