Summary 376 posts
The 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 moreThe tasks pertaining to the preparation of the annual financial statements and the year-end closing place a considerable burden on the accounting and tax professionals of Hungarian companies, who must also keep in mind the legal implications and obligations related to the year-end closing. Let\'s take a look at the legal tasks involved in the preparation of the financial statements and the year-end closing.
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 moreIn 2024, numerous companies in Hungary are required to make a CBAM declaration, based on a European Union regulation* adopted in 2023, regulating a mechanism to offset the carbon intensity of imported goods. There are still many unanswered questions regarding the obligation known as the carbon duty. Yet, CBAM will be a new, long-standing, and challenging obligation.
Read moreWe have summarized the changes that companies and employers need to be aware of from January 2024 regarding payroll accounting-related taxation - personal income tax, social contribution tax – health insurance, fringe benefits, and minimum wage.
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 moreFind below the most important changes in accounting coming into force in 2024, which companies should integrate into their accounting and auditing systems at the beginning of the year. Please note that the Accounting Act was amended several times in 2023, and these accounting changes were regulated in various pieces of legislation*.
Read moreWe have summarised the Hungarian VAT changes for 2024 that businesses should be aware of in relation to VAT in 5+1 points.
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