Press Release: Direct taxation: Commission requests Hungary to end discriminative tax incentives for research and development

The European Commission formally requested Hungary to change its tax law provisions which limit the granting of a tax incentive to taxpayers who engage in research or development activities performed on premises located in Hungary. The provisions are incompatible with the freedom to provide services as guaranteed by Article 49 of the EC Treaty and Article 36 of the EEA Agreement. The request took the form of a reasoned opinion (second step of the infringement procedure provided for in Article 226 of the EC Treaty). If there is no satisfactory reaction to the Reasoned Opinion within two months, the Commission may decide to refer the matter to the European Court of Justice.

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