Project group qualification is a special alternative qualification procedure for large companies, which perform a multitude of R&D projects within a tax year, and would like to utilize the R&D activity-related corporate income tax allowances. HIPO issues a binding resolution stating that project groups – which contain certain projects realized within a tax year, which are put in the group according to the same criteria – can be regarded as R&D. The first step of this procedure is the application for registration.
The eligibility criteria for registration are:
- a minimum of HUF 500 million R&D expenditure in the previous financial year (or a declaration that the amount above will be reached in the year of the project group qualification)
- a minimum of 50 R&D employees in the preceding financial year (or a declaration that this number will be reached or exceeded in the year of the project group qualification)
- availability of infrastructure that enables the performance of R&D activities (or a declaration that said infrastructure will be acquired in the year of the project group qualification)
The application for registration for R&D project group qualification needs to be filed at the Hungarian Intellectual Property Office.
The possibility of electronic administration is available through the electronic administration system of the Hungarian Intellectual Property Office (HIPO) (available only in Hungarian)
Electronic submissions may be filed with the HIPO only by using the free-of-charge form provided for this purpose. The form can be accessed by clicking the Electronically button.
In proceedings before the HIPO, electronic communication is possible only in a manner linked to identification, except for requests for information and their execution, as well as international patent cases.
Identification can be done in the following ways:
User identification system created by the HIPO, based on a one-time re-identification with the Central Authentication Agent.
Electronic signature with enhanced security is a minimum requirement.
When turning to the HIPO after identification through a partner card or the Central Authentication Agent, the HIPO will send its decisions, notifications and other calls made during the procedure to the client’s official electronic storage space.
It is important to emphasize that in case of identification with an electronic signature, the HIPO cannot communicate with its clients electronically and can deliver its decisions only on paper.
The filing procedure is as follows:
1. Download the form to your device. Filling out the form in a web browser is not recommended.
2. Login to the electronic administration system of the HIPO by using the Central Authorization Agent, partner card or electronic signature. If you have an electronic signature, please choose identification using an electronic signature with enhanced security.
3. Upload the filled form into the system. Based on the attachments marked in the form, a table will appear in which the attachments must be uploaded one by one. If you have already compiled these into a directory, you will easily find the right documents.
The size of files that can be attached to forms cannot exceed 150 MB each. The total size of the submission and all attachments may not exceed 300MB.
4. Indicate that you really intended to compile this submission, or look at the HTML submission summary.
The system compiles your submission, encrypts it and sends it to HIPO. HIPO sends an automatic notification about the arrival of the submission.
For more information on R&D project group qualification, please visit: https://www.sztnh.gov.hu/sites/default/files/rd_eng_web_final.pdf
The applicant shall register at HIPO within the first 60 days of the tax year. The duration of the registration process is 15 days.
Proof of payment of the qualification fee, authorization in case of a representative/attorney
The fee for registration amounts to HUF 80 000. The fee is due on the day of the submission of the application.
Hungarian Intellectual Property Office
The procedure for reviewing the decisions of the HIPO falls within the competence and exclusive jurisdiction of the Budapest-Capital Regional Court. Review of a decision may be requested by any party to the procedures before the HIPO, any person excluded from, or limited in, the inspection of files or any person whose legal status as a party to the procedure has been denied. Other participants in the proceedings before the HIPO may, in their own right, file an independent request for review against the relevant provision of the decision or the decision concerning them. The deadline for submitting a request for reviewing the decision is 30 days from the date of notification of the decision to the party or other party to the proceedings. The request shall be filed with the HIPO, but it shall be addressed to the Budapest-Capital Regional Court. A fee of HUF 10,500 must be paid when filing the request, in the case of electronic submission by bank transfer.
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Act LXXVI of 2014 on scientific research, development and innovation, §§ 36-42
Gov. Decree No. 332/2017. (XI. 9.) on the detailed formalities of the qualification of research and development activities, Chapters 1, 3 and 4
Decree No. 38/2017. (XI. 23.) NGM on the fees for administrative services in R&D qualification procedures