1. EU-Conform tax-related incentives  Tax-related allowances – Development tax allowance – Tax allowance for R&D activity, innovation and training – Tax-free development reserve for five years – Lowest corporate tax rate in Central Europe (16%) – Tax allowance on credit agreements  Local tax allowance − 50% of the local tax is deductible from the corporate tax base Tax-related Incentives www.gkm.hu www.itd.hu

2. Tax-related Incentives  Tax allowance for medium-sized companies in case of creating 150 new jobs (75 new jobs in underdeveloped regions)  50% of local tax can be deducted from the corporate tax base  50% of employers’ contribution to the social insurance can be reclaimed in case of employing entrants  Health care contribution reduced from HUF 3,450 to HUF 1,950 per capita www.gkm.hu www.itd.hu Favourable tax changes in 2005

3. Development tax allowance  Criteria of receiving the allowance (according to Act No. 1996/LXXXI.): Minimum investment value of – EUR 11.5 million in general – EUR 3.8 million volume in less developed regions and in case of research and development projects – EUR 0.4 million in case of environment protection investments and broad band Internet services Minimum growth of staff – 100 persons in general – 50 persons in less developed regions  The allowance can be received for a period of 10 years  Max. 80% of the corporate tax can be deducted Tax-related Incentives www.gkm.hu www.itd.hu