In Hungary the resolution on dividend is taken once a year when the financial statements are approved and the company\'s supreme body decides on the amount and payment of the dividend. Under the effective legal regulations, untied retained earnings supplemented by the after-tax profit from the previous financial year may be disbursed as dividend.
Read moreThe Court of Justice of the European Union (CJEU) has ruled (C-746/22) that a Hungarian rule which does not allow foreign taxpayers to submit their VAT refund documents even in the second instance procedure is not in line with the EU law. The CJEU found that the Hungarian legislation infringes the principle of VAT neutrality and the principle of effectiveness, as it prohibits taxpayers from providing the additional information requested by the first-tier tax authority in an appeal to the second-tier tax authority.
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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