New CIT rate in Hungary

As of 1 January 2017, Hungary reduces its corporate income tax rate to flat 9% instead of the currently applicable progressive 10% / 19%. The new rate is applicable for all taxable persons without any activity restrictions.

Time traveling into the world of transfer pricing documentation

The Hungarian transfer pricing documentation obligations may be the strictest system in Europe. Since its implementation it is repeatedly modified which makes the compliance even more complicated.

Learn about the Hungarian transfer pricing rules!

In our current article we reviewed the common rules of transfer pricing. We are giving answers such basic questions like: what is transfer pricing, how is evolved, why is needed, how strict is the Hungarian regulation, what are the consequences of default, what is exactly the transfer pricing documentation in Hungary, who-, when-, and about what should this be prepared, what kind of review obligations and simplifying options are available.

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Do you know that you can get tax incentive with subsidies?

New tenders for subsidy were announced in February 2015 under the „Versenyképes Közép-Magyarország Operatív Program” (Competitive Central Hungary Operative Programme, hereinafter referred to as VEKOP) and the „Gazdaságfejlesztési és Innovációs Operatív Program” (Economic Development and Innovation Operation Programme, hereinafter referred to as GINOP). Good news to the concerning companies that under certain conditions, development tax allowance and other tax incentives may also be available as an investment-related support concurrently with the above subsidies.

Globalizing word requires interdisciplinary solutions

At the age of globalization there is an increasing need for specialized advices on the taxation of "world citizens".

Increased capital requirements under the Civil Code

On 15 March 2017 the grace period relating to the increased capital requirements of the new Civil Code will expire.

IFRS – it is worth starting preparation in time

Certain Hungarian enterprises may already opt for bookkeeping according to IFRS (International Financial Reporting Standards) from 2016, while the number of IFRS transitions is expected to increase significantly as of 2017 onwards.

Personal income tax amendments as of 2016

The amendments to personal income taxation offer better conditions for 2016, decreasing tax burden and simpler tax administration for private individuals, support for taxpayers who newly return to the social security pension scheme, enticing taxpayers to bring back to the country untaxed income accumulated abroad.

Changes in the Accounting Act, 2016

Our current post provides you with information about the major changes in the Hungarian accounting legislation effective as of 2016. The amendments mainly aim to comply with EU directives unification. In addition, the modifications also aimed to converge the Hungarian thresholds with the EU levels, and also to harmonize the accounting legislation with tax and civil law regulations.

Growth tax credit for corporate income tax in Hungary

The most important amendment to the corporate income tax rules in Hungary for 2016 was the introduction of the so-called growth tax credit. This is a form of tax deferral which is available to limited number of taxpayers who meet the strict conditions. Please find below a summary of the respective rules.

2016 amendments to the VAT and invoicing legislation in Hungary

The new year brought several changes connected to VAT too.

Taxpayer’s qualification: the reliable and the risky ones

One of the major novelties of the Hungarian tax procedural rules as of 2016 is the introduction of the taxpayer’s qualification. During the qualification process, the Hungarian Tax Authority (HTA) distinguishes reliable and risky taxpayers. A taxpayer is qualified as reliable upon simultaneously meeting ten different conditions listed beneath. To be characterized as a risky taxpayer; however, it is enough to meet one of the given four conditions.

CROSS-BORDER EMPLOYMENT IN HUNGARY

In the following chapter we will provide useful information on the taxation of expatriates in Hungary including personal income taxation and social security law. LeitnerLeitner Hungary offers its professional assistance for cross-border employment and expatriate taxation both for foreigners arriving to Hungary or to Hungarians leaving the country for a foreign carrier.