Summary 198 posts
The deadline for submitting and paying corporate income tax (CIT) and local business tax (LBT) for 2023 is approaching. It is not worth leaving the preparation of the CIT and LBT calculations as well as preparing the corresponding returns to the last minute. In our blog, we would like to highlight some of the key areas which require special attention when preparing these calculations.
Read moreCompanies organising a conference, event or exhibition abroad – whether it is their own event, or an event organised abroad by an event management company – need to be aware of the circumstances when they are to apply for a foreign VAT number or pay VAT abroad. This is because failure to comply with VAT obligations can lead to heavy default penalties and tax fines.
Read moreThe tax authority\'s 2024 audit plan has been published and shows that this year\'s tax audits will focus on affiliated companies, transfer pricing, employee stock ownership plans and foreign income, but large employers should also expect inquiries. The range of activities identified as high risk has also been significantly extended, including focus on income from controlled capital market transactions and cryptocurrencies.
Read moreThis January a Hungarian legal regulation has entered into force on the global minimum tax, introducing the new tax type in Hungary, too. The global minimum tax, developed by the OECD and transposed into EU law, aims to ensure that the effective tax burden for groups of companies with a turnover above €750 million is evenly distributed among group members and that the effective tax rate per country reaches 15%. With the introduction of the global minimum tax, the groups concerned will face complex legal interpretation and administrative challenges
Read moreFiduciary trusts (“bizalmi vagyonkezelés” in Hungarian) have spread in the past few years. In recent years, trusts offering complex wealth management solutions have become increasingly popular in Hungary as well, with the number of managed asset accounts exceeding one thousand by February 2024. A legislative amendment contributed significantly to the increase in the number of trusts in 2023: the abolition of the tax-free placement of assets by private trustors encouraged many wealthy individuals to set up trusts before autumn 2023.
Read moreIn 2024, companies will have the opportunity for a tax amnesty by retrospectively reporting participation acquisitions that were not reported to the Hungarian Tax Authority previously. This will allow corporate income taxpayers who previously failed to report their participations obtained in other companies which could have exempted them from paying Corporate Income Tax (CIT) upon sale. The general deadline for the retrospective reporting of participations is 31 May 2024. The biggest beneficiaries of the retrospective reporting could be those companies expecting a significant market value growth of their subsidiary.
Read moreThe Hungarian tax authority is launching new supporting procedures pertaining to the capital income of private individuals received from abroad. Hungarian individuals who kept accounts with foreign financial institutions in 2019 and earned income from investments there can expect to be contacted by the tax authority.
Read moreBelow we have summarised the most important provisions of the 2023 tax packages* that come into force as of 1 January 2024. Let\'s take a look at the changes affecting the CIT, VAT, PIT, and other taxes that every Hungarian company should be aware of.
Read moreEver since the economical downturn of 2020, the SME sector in Hungary has been experiencing difficulties with the procurement of debt financing. In response, the Hungarian Government has expanded upon its supply of state-subsidised loans, while on the other side, some market participants have come up with creative solutions to raising capital for their companies. Some of these solutions may seem unusual to domestic markets, a couple of which we will discuss in this entry
Read moreThis year was a turning point for companies in the field of transfer pricing, as they were required to provide information on the determination of the arm\'s length price in their corporate income tax returns. We have collected the main issues and topics that have caused the most problems for companies when preparing their 2023 transfer pricing data reporting.
Read more
