TAXATION OF EMPLOYMENT IN HUNGARY

In the following guideline we will provide detailed information about the taxation of employment in Hungary. If you are considering doing business in Hungary, or you need a reliable partner in tax advisory, accounting, payroll or auditing, don't hesitate to contact us! We are dedicated to help our clients with our high quality, tailored ser-vices to find the best economic solutions

Conditional tax penalty: Advantage or Disadvantage?

This year, the regulation of the institution of the tax penalty has changed, so a new allowance on conditional tax penalty has been introduced. However, is it really beneficial for taxpayers?

Motivation of employees by stocks

At the time of total re-legislation of the cafeteria taxation, employers are actively seeking new instruments for the remuneration of their employees. Stock option plans now get even a higher emphasize than earlier, especially considering the potential high values that are not limited, and the long-term loyalty effect that is becoming ever more important in this fluctuating and demand-driven employment market.

Taxation that follows postings

Employment posting questions emerge in both short- and long-term relations. In practice, long term-postings are usually handled by the HR department; however, short-term business trips and trainings that may get a lower emphasize also require due care from a taxation and administration perspective. In addition, the logistics sector also has some special treatments.

The tax Aspects of Hungarian Real Estate

No wonder that real estate plays a major role in the overall M&A market, since these properties represent financial and emotional security too. Both buyer and seller try to maximize their cost-benefit ratio and are dependent on reliable data. Next to identifying, for example, future rental income and maintenance costs, the owner/lessor has to be absolutely sure about the funding of fiscal circumstances, including taxes. In this article, we would like to give an insight into the specialties of real estate taxation in Hungary.

Tax allowances and other advantages in Hungary

The newly introduced flat 9% Hungarian CIT rate combined with the various tax allowances and tax base reductions; further, with the withholding tax exemption of dividends, interests, royalties and any other services fees to corporate recipients make Hungary a very attractive location for foreign investments. In our present post, we would like to give a hint to the wide range of tax allowances and other advances offered by the Hungarian corporate income tax legislation, with special focus to the 2017 amendments.

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.

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.