Press Release: State aid: Commission closes investigation into Hungarian intra-group interest taxation

The European Commission closed a formal investigation under EC Treaty state aid rules into a Hungarian tax scheme, which provided for interest deduction for companies belonging to one corporate group. The investigation was opened in March 2007. The Commission had concerns that the measure was liable to distort competition in the Single Market, as it was not open to all companies in Hungary and therefore could amount to state aid. However, as the measure was introduced before Hungary's EU accession in May 2004 and its state aid character was not immediately clear, the Commission concluded that the measure was to be classified as existing aid. The Commission does not need to open a separate procedure for existing aid (which is subject to a different set of rules) as Hungary has in the meantime adopted a law repealing the measure as of 1 January 2010.

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