Tax law changes 2023-2024 Part 4 - The changing system of R&D tax incentives

The act pertaining to the autumn tax package was announced on 30 November 2023 by the Act LXXXIII of 2023 on the amendment of certain tax laws (hereinafter: ’Amendment Act’). The amendment, among many other tax types, affects the rules of corporate income taxation as well. In the fourth edition of our series of newsletters summarising the most important tax law changes, we hereby present the rules of the new tax credit connected to research and development (R&D) activities.

According to the Amendment Act, taxpayers carrying out R&D activities will be entitled to a new tax credit from 2024. The R&D tax credit can be applied by the taxpayer for basic research, applied (industrial) research, and experimental development activities, with regard to the related direct costs (eligible costs). The tax credit can be applied in the tax year of the incurrence of eligible costs and in the following three tax years, in order of their incurrence.

To read the whole newsletter below.