M&A in the pandemic

During the last six years of economic growth, the number of insolvency proceedings in Hungary has reduced. As a result of the coronavirus epidemic, however, the positive trend is likely to reverse from the second half of 2020 and even more so from 2021.

Wage subsidy for R&D personnel

R&D wage subsidy may be granted ex post on a monthly basis provided that the following requirements are met:

Postponement of deadlines for financial statements and yearly-taxes

The Hungarian government has further eased the following tax and accounting provisions:
 

Retailer surtax based on last year’s turnover!? Is there a solution?

The Hungarian Gazette of Tuesday, 14 April 2020 published a decree on the surtax of retail industry. The surtax may result in a significant overtaxation due to the fact that the basis of the advance payment liability is the turnover data of the previous business year based on the decree. Practically, this is the update of the former Hungarian act of 2010 on sector-specific taxes as both the object and the tax rate are the same as in the old act.

Financial measures related to Covid-19

There are several financial measures in order to ease the financial situation of the population and companies.

Relief in tax administration

In addition to reducing costs for companies, facilitations in ​​tax administration have also been introduced.

State support to salaries

If the wages of employees working in shorter time are supplemented by the state, workers will get better out of their revenues while companies can retain their employees.

Surtaxes levied to finance the economic package

Surtaxes are intended to make up for missing revenues and to cover increased expenditures.

Rules related parenting

Due to the coronavirus epidemic, special rules have been introduced to alleviate the situation of parents raising children.

Flexible labour law provisions

As part of the protection package, the rules of working time banking become even more flexible.

Covid-19 related tax measures in Hungary

A number of tax measures have been introduced to reduce the effects of the economic crisis caused by the coronavirus epidemic.

Covid-19 - Economy protection

In view of the emergency situation introduced on 11 March 2020, the Government announced another economic protection package on 23 March 2020 by which the following measures were introduced from the next day in Hungary.

Covid-19 - Stay at home order

In view of the emergency situation introduced on the 11th of March 2020, the Government has announced on the 27th of March 2020 another protection action plan as restrict to leave homes. According to the new protection plan the following measures took effect as of the 28th of March 2020.

Covid-19 – Economical and taxation impacts of Hungarian official measures

By March 18, the government had taken a number of measures to protect jobs and the economy, even the most of the provisions of the action plan are limited to a defined group of businesses. However, companies that may have difficulties with their tax obligations due to cash flow problems, according to the general rules may apply to the Hungarian Tax Authority for a payment facility (deferred payment or instalment payment). In addition, it is possible to request the reduction of the tax advance obligations as well. In both cases, LeitnerLeitner's experts are available for the administration process.

Extraordinary legal order in Hungary

Responding to the business situation caused by COVID-19 Hungary currently has an extraordinary legal order, which even allows for immediate legislation in view of the emergency was introduced on 11 March, 2020 by the Government.

Our function is uninterrupted during the epidemic but it is carried out in safe isolation

LeitnerLeitner is aware of the seriousness of the situation in our community triggered by CoV. Ahead of these developments, we have early prepared a plan of actions, which is effective as of 13th of March. The essence of these measures that our colleagues work in home office.