During poli-crisis it is vital to develop flexible solutions for our clients

What is the number one challenge facing the financial sector in Hungary today?

Nowadays the economy has to face not just one challenge, but several at once. It is usually called “poli-crisis”, which is the number one challenge – and all its parts in itself has an impact on our areas, meaning for LeitnerLeitner/LeitnerLaw financial, accounting and auditing, tax consultancy and legal support. Issues raised by war, climate change, competitiveness, digitalization and increasing authority control brings to life new and new framework both internationally and domestically. Even one of these would be enough to rethink ones’ strategy, to rationalize and adapt. During consulting, it is vital to consider the uncertain, constantly changing environment and to develop flexible solutions for our partners.

What is the greater problem, finding suitably qualified staff in the first place, or retaining them once hired?

Attracting and keeping talented loyal workforce are equally not easy nowadays. So, if we have finally found, we do our best to keep them as being our biggest treasures. To develop competitive benefit packages, offer flexible working hours, home office opportunities, a pleasant environment, continuous training and career improvements are just a basis in that. The key is adaptive people focus, in my view. For the younger generations we provide continuous development, challenges and adequate feedback, the possibility of self-development both in knowledge and career path. For matures we offer, in addition, the possibility of self-realization in a supportive and safe environment. They all receive attention not only as workers, but also as people.

The diversity of LeitnerLeitner/LeitnerLaw's management also helps in this. We are leading 5 altogether with diverse personality and professional backgrounds. Márta Siklós, with her enormous personal and professional experience, Dr. Nóra Rácz with her system improvement intention and entrepreneurial skills, Dr. Gellért Menczel-Kiss with his youthful momentum, Dr. Levente Szabó with his leadership and client-focus and myself with a will to build trust in the team and improve in new professional areas again and again.

What are the latest trends for your sector?

As said above, all parts of the “poli-crisis” have an impact on all our professional areas.

Tax digitalization extends not only in Hungary, but also spreads in the EU through the VIDA initiative, meaning e-Invoicing, Digital Reporting Requirements increasing the standardization and real-time availability of tax data, giving significant munition for Authorities and create a basis for EU-wide predictive analysis models for risk assessment in tax investigations.

The importance of transfer pricing is still increasing. Hungary was/is/will be on the top of this area with world record penalties, severe rules of median adjustment, obligatory reporting requirements, which generate many practical problems and potentially lead to double taxation. The increasing attention requires even more caution, and this area will also remain in the spotlight globally with the introduction of public CbCR and the trends toward BEFIT.

Finally, the GloBE taxation presenting a new challenge for corporate groups with imposing a top-up tax where the effective tax rate is below 15%. As Hungary is a capital importer country, where the subsidiaries of numerous GloBE affected multinationals are located and as part of our international tax competitiveness we maintain the low level of flat 9% CIT taxation, this topic turns to be hot. Especially if we consider the sectoral and extraprofit taxes of industries such of financial, retail, energy, airlines, pharmaceutical, etc. – being under pressure of 3 plagues: the ordinary corporate income taxation, the GloBE and the special taxes, which cries out for a revision of the system to make it fairer. While complexity requires the joint support of tax and accounting professionals, Hungary still offers tax allowances, also within the GloBe regime, which worth to look up investment potentials here.

Judit Jancsa-Pék has been working as one of the leaders of LeitnerLeitner since 2006, became partner in the company in 2013. She has outstanding experience in the field of international taxation, with special regard to corporate taxation, M&A, transfer pricing and value added tax. She graduated in economics at the Corvinus University of Budapest, majoring in finance, she is a certified tax expert and LL.M. in international taxation.

She is a member of the VAT Expert Group operating with the European Commission, thus having a direct overview of the development of the EU's VAT strategy. She is the Chairman of the Tax Forum at the Joint Venture Association and the President of the Tax Committee at the SME-House, and a Vice President of the Association of Tax Advisors.

Her hobbies – painting and drawing – take her back to the creativity of childhood. The best way to relax is going on trips to lakes or rivers to indulge in nature.