The European Commission has approved a Hungarian state aid scheme to support and provide liquidity to small and medium-sized enterprises in order to mitigate the impact of the coronavirus crisis.
The scheme was approved by the Commission under the Temporary Framework regarding state aid related to the coronavirus epidemic.
Under the scheme, the state support will take the form of a reduction of the local business tax rate to 1% and a 50% reduction in the advance payments of the local business tax.
The Commission found that the Hungarian scheme is in line with the conditions set out in the Temporary Framework, as the amount of aid will not exceed EUR 200 000 per company in case of businesses involved in the primary production of agricultural products, EUR 240 000 in case of companies in the fishery and aquaculture sector, and EUR 1 600 000 for companies working in all other sectors; and the program will end on 31 December 2021.
On the basis of all that, the Commission approved the scheme in accordance with the state aid rules of the European Union.