Competitiveness Through Research and Development

Many companies in Hungary are unaware that their activities may qualify as research and development (R&D) activities, which could qualify them for tax breaks or cash grants to boost their competitiveness, Deloitte said in a statement sent to MTI.

R&D is based on some scientific or technical uncertainty, and is also a novel and methodical activity, the consultancy's experts point out.

Roland Horváth, senior manager of Deloitte's tax department, points out in the statement that it is worth examining production and logistics processes, among others, since R&D activity can be identified even in relation to an existing technology or process where modifications were necessary, thus creating a new solution/process.

As explained in the Communication, the National Intellectual Property Office (NIPO) classifies potential R&D activities on the basis of three types of procedures and then issues a decision or opinion that can be used before any authority or court. It is possible to apply for certification before, during or even after the completion of a project.

To find the R&D process, it is necessary to look at the activities of companies and identify the areas where projects may be R&D. Such projects can be identified in a wide range of industries, be it food, manufacturing or even service companies. Once the potential R&D projects have been identified, the qualification process for the selected projects can begin.