New compensation scheme for large enterprises

New compensation scheme for large enterprises

NEW COMPENSATION SCHEME FOR LARGE ENTERPRISES

In line with the approval of the European Commission on June 23, 2020, a new compensation scheme has been introduced by the Ministry for Foreign Affairs and Trade, managed by the Hungarian Investment Promotion Agency (HIPA). The new scheme is available from July 6, 2020 for large companies based on the amendment of Decree 7/2020 (IV.16) of the Ministry for Foreign Affairs and Trade on the subsidy to improve competitiveness required as a consequence of coronavirus situation and the introduced administrative measures.

The coronavirus outbreak has a severe economic impact that resulted in declining revenues and operating profit. Therefore, Hungary has adopted a new compensation scheme that compensates the affected undertakings for the damage caused by the COVID-19 outbreak and administrative measures adopted with the intention to minimize the spread of the virus.

The compensation will be granted in the form of non-refundable cash grant for those companies that are willing to contribute to economic recovery of Hungary. Hungary has allocated a budget of HUF 50 billion from national resources for the realisation of the aid scheme.

For further information about the program, please refer to our presentation by clicking here.