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 purely domestic companies, 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")
The transfer pricing regulation that entered into force this year will become mandatory as of 2026; however, for the 2025 tax year it is already optional to apply the rule that no local documentation is required for transactions below HUF 150 million.
.png "Is it worth applying the new transfer pricing rules for 2025?")
The table below outlines the differences between an asset management foundation and fiduciary asset management.
.png "Which form of asset management is the better choice for preserving wealth?")
If we are looking for a solution for the long-term preservation, efficient management, and tax-efficient generational transfer of significant wealth, an asset management foundation may be an appropriate instrument.
Since the 1970s, human rights movements and organisations have taken a clear stance and implemented measures to combat wage discrimination. As a result, improvements were noticeable for a long time; however, this process has slowed over the past decade, and since then the average gender pay gap within the European Union has no longer decreased significantly. For this reason, the European Parliament and the Council have set out concrete measures. One of the key instruments is pay transparency, as well as the practical implementation of the principle of “equal pay for equal work.
.png "Equal Pay for Equal Work: The Principle in Practice")
The legal framework for implementing tasks related to the global minimum tax (GloBE) is continuously evolving. In recent months, several implementing regulations have been published. The autumn tax package refined the conceptual framework of the global minimum tax and the rules on information exchange. These provisions must be applied when fulfilling the obligations due on 30 June 2026, and since the rules are quite complex, preparation should not be postponed.
.png "Don’t wait until the last minute to meet your GloBe filing and reporting obligations by June 30")
According to current plans, the proposed reform of the EU social security framework may take place in the first half of 2026, creating new challenges and opportunities in the field of cross-border employment. Changing forms of work, a mobile workforce, and digitalisation are giving rise to increasingly complex legal and administrative issues.
.png "Reform of the EU Social Security Regulation Expected Soon")
The main difference between the TISZA program and current Hungarian practice is that so far fiscal balance has been ensured to a significant extent through inflation, consumption (VAT) revenues, and sector-specific taxes, whereas the TISZA program aims to achieve fiscal room for manoeuvre from non-fiscal sources: namely through eliminating corruption and reclaiming EU funds. The goal of the TISZA program is to reduce taxes on work and entrepreneurial activity, as well as to create a fairer tax system.
.png "Proposed tax package of TISZA program in practice")
In our previous article, we presented the changes in Hungarian economic support trends and clarified the basic concepts of R&D. In this article, we review the various available incentives. These can be grouped into three main categories: the first includes tax base and tax allowances that can be applied during research and development activities; the second category covers incentives related to the use of intellectual property created through these activities; and finally, R&D projects are also given preference in direct financial grant funding.
.png "What R&D incentives are available in the Hungarian tax system and in the form of financial support?")
The legal framework of fiduciary asset management can offer numerous advantages to foreign investors and wealthy families even in an international context. Neither the settlors, the asset managers, nor the beneficiaries are required to be Hungarian citizens, and it is also not a requirement that they reside in Hungary for an extended period.
.png "Foreign nationals can also benefit from the advantages of Hungarian trust management")
Fiduciary asset management is a wealth planning tool that provides an effective solution for asset protection, generational transition, the development of a family inheritance strategy, and the management of international investments. It can be an optimal choice for individuals and families who wish to secure, organize, and pass on their wealth over the long term.
From 2025, we are saying goodbye to the previous transfer pricing regulation and introducing a new one, which affected parties may choose to apply already for the previous year. However, from 2026 onwards, its application will be mandatory. While the new rules do include certain simplifications, they are much more characterized by stricter requirements.
It is well known that the larger and more complex a machine or organization is, the slower it can turn around and change direction. This is also true of a country's economic policy. But no matter how slow a change may be, after a while it becomes noticeable. At first, perhaps only the officers and helmsmen notice it, then the crew, and finally the passengers may also notice that the Hungarian economy, even if it has not turned around completely, has begun to move in a different direction than before.
Corporate transformation is a process that requires interdisciplinary cooperation. Its success depends on the joint efforts and collaborative thinking of tax, legal, and accounting professionals.
On November 19, 2025, the OECD clarified the rules on the creation of a permanent establishment for tax purposes in connection with working from home. The changes are particularly relevant for companies whose employees regularly work remotely from abroad.
.jpg "When does working from home create a permanent establishment? – New OECD rules")