All business associations with domestic premises, under Act No. C of 2000 are bound to pay innovation contribution, except starter companies – in the year of registration - without a legal predecessor and pre company periods, enterprises standing under the liquidation or compulsion deletion procedure.
According to the new Act LXXVI. of 2014 on scientific research, development and innovation business associations can be exempted from innovation contribution from 1st of January 2015, if they meet certain requirements of being a small scale enterprise and micro enterprise. These requirements are the followings according to the Act XXXIV of 2004 on small and medium sized enterprises:
Small enterprise
a) employs fewer than 50 persons and
b) whose annual turnover and/or annual balance sheet total does not exceed the forint equivalent of EUR 10 million.
Micro enterprise
a) employs fewer than 10 persons and
b) whose annual turnover and/or annual balance sheet total does not exceed the forint equivalent of EUR 2 million.
The company shall meet both requirements described in points a) and b). The figures shall be determined on the basis of the last – in this case year 2013 - financial statement of the domestic company, where they exist, in lack of this, the staff figures and annual turnover or annual balance sheet total of the company’s own internal reports.
In case the company’s operation time is less than one year, the data should be annualized.
In case of newly established enterprises the actual year’s business plan should be considered.
Till 31.12.2014, the upper requirements had to be determined for the consolidated accounts (partner and affiliated companies total).
But from 01.01.2015 - first based on the state on the first day of the business year starting in 2015 – exclusively the micro and small scale enterprises based on their stand-alone financial statement and employee figure data are exempted from the innovation contribution liability.
Tasks to do with the previously prescribed advances
Those enterprises which are exempted - based on their stand-alone financial statement - from the previously prescribed advance payment obligation from 1st of January 2015, they can request in written form the cancellation of the advance payments from the tax authority for the financial year of 2015 (in general case for the Q1 and Q2 of year 2015) according to the Act XCII of 2003 on the Rules of Taxation 42.§ (1) paragraph.
Those enterprises should pay the previously prescribed advances which would not request the advance-cancellation till the deadline, because it results a payment obligation status.
Otherwise, the paid advances could be adjusted in the tax return regarding fiscal year of 2015 (actually on 31st of May 2016).