When selling e-books, a common question is why they are subject to a higher VAT rate than traditional printed books or publications supplied on physical media. Although the European Union enabled Member States several years ago to apply reduced VAT rates to electronic publications, Hungary has not yet taken advantage of this option.
.jpg "What Is the Current VAT Treatment of E-books in Hungary?")
Most people only turn to a tax advisor when a problem has already arisen: they are facing a tax audit, have received a penalty, or are unexpectedly confronted with a tax liability. While tax advisory services can certainly help in these situations, they are far more valuable when used proactively for prevention and informed decision-making.
By now, digitalization has transformed virtually every area of business operations, and accounting and payroll are no exception. Today, it is considered standard practice for invoices to be received electronically, bank data to be imported automatically into systems, payroll slips to be generated in digital format, and a significant portion of regulatory reporting to be submitted online and in real time.
.jpg "Where Do Digitalization and Automation Stand Today in Accounting and Payroll?")
Although EU countries independently design and operate their own social security systems, millions of people live or work outside their home country within the European Economic Area. It is important that both these individuals and the authorities concerned have clarity regarding their social security rights and obligations. To clarify and protect these cross-border entitlements, social security coordination rules were introduced. These rules ensure continuity of benefits, help prevent double contributions, and support the free movement of persons.
.jpg "EU Social Security Coordination Between Member States Is Being Modernised")
In recent years, an increasing number of individuals have turned to trust asset management structures (TAMs) as a tool for the long-term management and protection of family wealth, including businesses, real estate, and other investments. Many have also used these structures to facilitate intergenerational wealth transfers.
.png "How to Prepare for Tax Changes and Audits Affecting Trust Asset Management Structures?")
Tax returns are prepared based on data from accounting records and payroll processing.
.png "The Relationship Between Accounting, Payroll, and Tax Returns")
Every business has the option of managing payroll internally or assigning the task to an external service provider. However, it is important to note that the ultimate responsibility always rests with the employer, regardless of whether payroll is handled by in-house staff or an outsourced specialist. The most suitable approach depends on several key considerations.
.jpg "When Should Payroll Be Outsourced to an External Service Provider?")
Payroll is one of the most sensitive business processes. When something goes wrong, the consequences extend far beyond financial losses—employee trust can quickly be undermined as well. In some cases, payroll mistakes may even lead to legal disputes or issues with authorities. That is why accurate and up-to-date payroll administration deserves special attention.
.png "Reduce the Risk of Payroll Errors!")
While the aim of our article series is to encourage businesses to identify activities that qualify for R&D incentives and take advantage of the available tax benefits, in this final article we would like to highlight the importance of compliance and the risks associated with audits.
The key consideration is that support should only be
claimed for costs genuinely related to R&D projects, and every step of the
process must be properly documented. It is also advisable to involve technical
experts in the evaluation of projects and seek assistance from tax advisors
with tax calculations and documentation.
.png "Tax Audits of R&D Incentives")
The European Union
expects Member States to achieve progressively greater reductions in packaging
waste: at least 5% by 2030, 10% by 2035, and 15% by 2040 compared to 2018
levels. These measures are expected to reduce the projected volume of packaging
waste by approximately 37% by 2040.
.png "PPWR: Ambitious Waste Reduction Targets")
When a company operates across multiple countries and its employees and management come from an international background, payroll processing becomes significantly more complex. The cross-border status and income of expatriates, employee benefits and bonus schemes that differ from the Hungarian system, as well as reporting requirements towards foreign shareholders all add further layers of complexity to payroll operations. Moreover, international payroll is not only a payroll issue. The situation must also be assessed from legal, tax, and social security perspectives to ensure full compliance and to mitigate risks.
.jpg "Payroll in an International Environment – Specific Challenges")
Do you develop products? Improve methods and processes as part of your core business activities? Your company may already be eligible for valuable R&D tax incentives without even realizing it.
.png "Discover R&D-Eligible Activities Within Your Business Operations!")
Many companies view payroll as part of the accounting function, although in reality it is a distinct activity based on a different legal framework, serving different objectives and involving different types of risks. In smaller companies, payroll often encompasses HR and employment-law responsibilities as well. However, the most important difference between accounting and payroll is that while accounting errors typically result in administrative issues that can be corrected relatively easily, payroll mistakes can fundamentally undermine employee trust—the very foundation of a company's operations.
.png "Payroll and Its Risks for a Company")
Electronic invoicing, e-receipts, online cash registers, online banking, automated data processing, and automated risk management at the tax authority (NAV): in recent years, accountants and tax advisors have had to keep up with rapid changes. Accounting today is no longer mainly about mailing paper documents and manually entering data, but rather about data-driven, digital processes. But what does this mean from a business perspective?
.png "Digitalization in Accounting")
At subsidiaries of foreign-owned corporate groups operating in Hungary, the question often arises whether accounting should be performed under the Hungarian Accounting Act or under IFRS.
.png "Differences Between Accounting Under Hungarian GAAP and IFRS")
The accounting of Hungarian subsidiaries belonging to international corporate groups is more complex than that of a purely Hungarian company, as they must comply not only with Hungarian regulations but also with group expectations and international accounting standards.
Over the past four decades, the total accumulated wealth in developed countries has risen to more than six times national income, up from around three times previously. At the same time, the distribution of wealth has become highly unequal. Nevertheless, most countries still do not impose a general and direct wealth tax, even though such a tax could help address the increasingly difficult task of financing the public sector worldwide.
.png "Is there a viable way to tax large fortunes? Is it beneficial for the economy?")
.png "employment, equal wage equal work, Pay Transparency, Worklaw")
.png "Related Parties and Transfer Pricing – When Is Documentation Required?")
One of the key challenges arising from the new transfer pricing regulation is the tightening of segmentation requirements. This is especially relevant for meeting transfer pricing obligations for the 2025 tax year, as this is a transitional year during which certain areas may already be subject to the new rules, while others must continue to be handled under the previous requirements.
.png "Segmentation is the biggest challenge of the new transfer pricing rules")