Around 20,000 companies could benefit from “growth tax credit”

Budapest, May 18 (MTI) – Some 20,000 Hungarian companies could benefit from a “growth tax credit” the government is proposing, business daily Napi Gazdasag said on Monday.

The tax credit, outlined in a tax bill submitted to Parliament by the government last week, would allow tax deferrals for companies whose annual revenue rises 400 percent or more.

Such high-growth companies could plough back their earnings into their businesses, establishing the foundation for further growth, deputy state secretary for tax affairs Zoltan Pankucsi told the paper.

Companies that avail of the deferral could pay their corporate tax in eight equal instalments over two years.