Summary 198 posts
As part of the transfer pricing related tasks, the obligation to file a country-by-country report (CbCR) and notification to the tax authority must be fulfilled by 31 December 2024 for fiscal years corresponding to the calendar year.
Read moreBill no. T/9724 on amendments to certain tax laws, which also contains a number of significant changes affecting companies, was brought before the Hungarian Parliament on 29 October. One of the main goals of the proposal is to simplify the tax system and whiten the economy, particularly in the areas of corporate income tax, VAT and retail tax. The draft legislation would transpose many government decrees adopted during the state of emergency into law. Our blog below contains the most important changes in detail so that your company will be prepared for the new rules coming into force in 2025.
Read moreWhen a foreign company carries out transactions in Hungary for which the place of supply is in Hungary and are not subject to international reverse charge, that company must apply for a Hungarian tax number. In such cases, the foreign company may possess tax numbers in multiple countries, similarly to dual or multiple citizenship for individuals.
Read moreTax authority inspection, tax audit, compliance audit/minutes – these are the terms that every taxpayer should understand. What is more, you should know the detailed rules of the tax audit and the compliance investigation, as it is important what kind of protocol the tax authority review is based on.
Read moreThe precise and efficient completion of the M-sheets (domestic recapitulative statement) is vital to avoid the attention of the tax authority. The correct handling of M-forms is of utmost importance, as the tax authority\'s new risk analysis methods are focused on the accuracy of the reported data.
Read moreAs of 1 August, the provisions of the Act on the Rules of Taxation on default penalty will be amended. The Hungarian Government, in reference to the war between Russia and Ukraine, doubles the penalty for general default, the failure to report employees, and non-compliance with the obligations to issue invoices, receipts and keep documents.
Read moreAccording to the Hungarian Gazette published on 8 July 2024, the rules for the social contribution tax benefits for labour market entrants are becoming stricter. Please find below our summary of the changes companies need to consider regarding social contribution tax (szocho in Hungarian) from 1 August 2024.
Read moreIn 2022, significant changes were made to transfer pricing and the preparation of transfer pricing documentation, with a multiplication of the fine and the introduction of a transfer pricing data reporting obligation. Please note that non-compliance with changes entered into force for the 2023 tax year could result in the imposition of multiple default penalties. Based on the experience of the past year, businesses are increasingly likely to face direct transfer pricing audits on transactions with their related parties.
Read moreAs of 2024 a new, significant corporate income tax (CIT) incentive is introduced for investment projects aiming at construction of electricity storage facilities (i.e. batteries).
Read moreThe correct SME qualification (micro, small or medium-sized) has a particular importance for Hungarian companies when applying for certain EU tenders or reviewing the eligibility for corporate income tax (CIT) base decreasing items or CIT credits, but also for determining whether a given company is subject to innovation contribution or not. The Hungarian SME qualification has to be carried out based on a complex methodology prescribed by the corresponding act, and the SME status has to be indicated in the annual CIT return.
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