There have been further changes to corporate taxation in July.
Local taxes
§
Restructuring of
the local business tax liability for air passenger transport
For airlines, the airport where their flights depart
from is also considered to be the place of establishment. An air passenger
transport operator is whose turnover consists overwhelmingly from air passenger
transport and the related services. The definition of net revenue has been
clarified for foreign airlines: the consideration received for the use of
passenger flights from Hungary and related services is included in this
category.
§ Tax liability of temporary employment agencies
A specific definition for establishment is to be
applied for temporary employment agencies as well. As an establishment is to be
considered the area of jurisdiction of any municipality also where the total
number of hours worked by temporary agency workers during the tax year reaches
1,440. This definition of establishment is to be read in compliance with the
temporary employment agency's office and representation.
Innovation contribution
Transfer pricing rules are henceforth to be applied
not only for local taxes, but also for the innovation contribution, which has a
similar tax base definition. The two tax regimes are therefore harmonized with
the transfer pricing methodology for corporate taxation, including the
calculation of the tax base and the mandatory median adjustment.
In addition, as a simplification, a small business
taxpayer may determine its innovation contribution base according to its
simplified local business tax base, if it is subject to an innovation
contribution. This simplification can be claimed on the basis of a preliminary notice.
Corporate tax
In line with the
further rest of the Advertising Tax Act, advertising costs will no longer be
subject to a tax deduction prohibition.
Unlimited loss
carry-forwards have been introduced for loss carry-forward generated until the
last day of the tax year 2014, not used so far.
Value added tax
·
VAT treatment of
empties
A compulsory
redemption system for empties was
introduced into the VAT system for simplification purposes.
For non-recyclable products subject to a mandatory
redemption fee, the redemption fee is not part of the taxable amount of the
supply and therefore no VAT liability arises.
However, the VAT system works differently for deposit
refundable products. In this case, a fee is charged for the packaging, which is
refunded when the package is redeemed. The deposit fee forms part of the VAT tax
base and when the deposit fee is refunded on redemption of a deposit refundable
product, the tax base is subsequently reduced.
It is a taxable event and results a tax liability if
the non-reusable product is not returned.
·
VAT refund on
immovable property
Thanks to a legal harmonisation amendment, taxable persons not established
in the inland but established in a Member State of the European Union will be
able to recover input VAT on the purchase of domestic real estate under the
special VAT refund procedure.
·
VAT on
transactions to customers from other Member States
The VAT law gives small and medium-sized businesses the option of paying
tax on transactions carried out for customers from other Member States in the country
where they are established. They can opt for standard taxation instead of the
derogations, which must however be maintained for 2 years.
·
Preparing for
the introduction of eNyugta (e-receipt)
The enabling provisions and basic definitions necessary for the
introduction of electronic receipts have been codified into law, while the
details of the concept will be set out in a ministerial decree for the further bleaching
of the economy.
