Change in the EKD system: even smaller investments can receive significant support
The non-refundable cash support provided by individual government decision (EKD) can also be requested for developments that are lower than before, already 3 million euros instead of 5. The amendment to this regulation was published in the Gazette yesterday. The change can boost investment in less developed settlements as well – points out EY.
It is expected that the range of companies that can claim non-refundable cash support from the government will expand. According to the new rules, depending on the nature of the settlement, an investment of 3, 5 or 10 million euros is required for the EKD to be positively evaluated.
10 million euros is the investment threshold in the 11 most developed county seats (Győr, Székesfehérvár, Tatabánya, Szekszárd, Kecskemét, Szombathely, Veszprém, Zalaegerszeg, Debrecen, Szeged, Eger)
5 million euros in the administrative area of 7 county seats and district centers (Salgótarján, Miskolc, Nyíregyháza, Békéscsaba, Pécs, Kaposvár and Szolnok)
The limit is 3 million in all other settlements
“With this decision, the way can also be opened for companies that have not had enough funds for an investment until now. For a positive assessment and the identification of further opportunities, it is therefore worth consulting with an experienced specialist in time”
– emphasized Zsolt Kocsis, EY’s tax partner.
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