Summary 393 posts
The amounts for the minimum wage and guaranteed minimum wage for 2025 have been published in Issue 127 of the Hungarian Gazette and officially announced. In 2025, employers should plan for a 9% increase in the minimum wage and a 7% increase in the guaranteed minimum wage for full-time employees. The wage increases will take effect from January 1, 2025.
Read moreStarting from the summer of 2025, employers must prepare for a new penalty that will affect procedures aimed at clarifying insured employment relationships. The new legislation aims to ensure compliance with employment and reporting obligations and increase the accuracy of reporting processes. The new rules provide for severe penalties depending on the seriousness of the offence.
Read moreThe Hungarian tax authority is constantly improving its control methods to ensure transparency and compliance of economic operators, and the data reconciliation procedure is a new step in this direction. The main purpose of the data reconciliation procedure is that the HUTA regularly compares the data from the real-time invoice reporting system with the information on the VAT returns submitted by companies.
Read moreAs 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 moreBased on the the Act on Global minimum tax legislation (GloBE legislation) effective as of January 1 2024, taxpayers with a tax year following the calendar year, which fall under the scope of the legislation, would be required to provide information on their GloBE status to the Tax Authority by December 31 2024. Even 2,000 companies may fall under the global minimum tax reporting obligation. It may affect business groups which only have Hungarian members, as well as those which also have foreign members. Anyone concerned missing the reporting deadline may face a fine amounting to millions.
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 moreKPIs (key performance indicators) and OKRs (objectives and key results) are two popular frameworks used to drive business results. Understanding the difference and relationship between KPIs and OKRs will help you learn how to use and integrate both in order to achieve your company\'s strategic goals and improve performance. Although these terms are often used interchangeably, when applied properly, they can complement each other in facilitating strategic alignment, innovation and operational success.
Read moreA number of Hungarian businesses are involved in international trade, including intra-Community supplies of goods, import of goods from third parties or supplies of services abroad. For cross-border transactions, it is important to examine whether there is a requirement to register for VAT abroad and whether any VAT liability arises abroad. Below we present five cases where companies are required to pay VAT abroad in connection with cross-border transactions and must therefore apply for a tax number.
Read moreAt the beginning of October 2024, once again, the Court of Justice of the European Union ruled in favour of the taxpayers in a case regarding the right to deduct VAT. Although the judgment was delivered in a case in Romania, its findings can make a significant contribution to the successful exercise of the right of Hungarian businesses to deduct VAT.
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