The revised eVAT is coming soon! Notice

Testing of the automated VAT declaration system is expected to finally start this autumn, and the system is scheduled to be ready for deployment in 2024.

The introduction of eVAT was originally planned for 2021 but was postponed in the last moment.

Another step towards a recycling economy - the extended producer responsibility scheme

The economic model based on single consumption is polluting and wasteful, therefore the implementation of a circular economy has become one of the main goals of the European Union’s environmental and economic policies in recent years. The idea is to extend the life of products as much as possible and minimise waste, rather than consuming them once.

Family tax allowance for foreign individuals

The Hungarian labour market is increasingly characterised by an influx of foreign workers, which intensified after the outbreak of the Russian-Ukrainian war. However, there are often tax issues for foreign workers, such as what tax benefits they are entitled to.

The issue of entitlement to family allowances is discussed below.

Do not fall into a VAT Trap: Manufacturing or Toll Manufacturing Makes a Huge Difference

Hungary is often mentioned as a country of manufacturers, but there is a significant difference from a tax point of view between manufacturing independently or on demand, when a foreign customer engages a Hungarian firm to make products using the customer’s raw materials. And it can be expensive to make a mistake in evaluating the nature of the transaction!

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

TAXATION OF CORPORATIONS IN HUNGARY

In the following guideline we will introduce the main principles of corporate income taxation in Hungary. If you are considering doing business in Hungary, wish to improve the tax position of your corporation or simply face with any direct taxation problems; please don't hesitate to contact us for further information! LeitnerLeitner Hungary offers its full-scope professional assistance in taxation and accounting matters.

TAX ALLOWANCES

Numerous subsidies and tax allowance forms partially backed with European Union aid resources are still available in Hungary. For investment projects; however, we also highly support to always consider the taxation impacts carefully and not to forget about the potential related tax allowances – for which LeitnerLeitnter offers its professional assistance for tax optimization and allowance claims.

SECTOR RELATED AND OTHER TAXES

Hungary applies numerous other business related taxes such as sectoral taxes or surtaxes, local taxes, duties, environmental and health care taxes. This guideline provides for a short summary of them. Keep in mind, that taxation in Hungary is a swiftly and often changing area, especially in the category of smaller, sector related taxes. We highly recommend hiring professional tax advisors in order to meet the expectations of the tax authority and avoid charges. Please contact us for more information!

LEGAL FORM OF BUSINESSES IN HUNGARY

In this guideline we will provide detailed information about the legal forms of doing business in Hungary. If you have questions about the discussed topic or about taxation in general, don't hesitate to contact us! We are dedicated to help our clients with our high quality, tailored services to find the best economic solutions in setting up their business in Hungary.

FINANCIAL REPORTING AND AUDITING

In this article we will provide detailed information about the basics of accounting, financial reporting and auditing in Hungary.

How to Comply Effectively With the new Transfer Pricing Obligations

 

Undoubtedly, 2023 will be a great challenge again for multinational companies, not least because of the latest adjustments to transfer pricing rules. The new obligations are known in detail and effective now; thus, affected companies must apply them as soon as possible.

New rights, obligations and opportunities in the world of labour: the Hungarian Labour Code has changed

 

On the 1^st of January 2023 numerous rules of the Labour Code has amended: new charges have been laid on employers, rights of employees have altered. Among the others the rules of the liability of information have changed, paternity leave has been extended, parental leave has been introduced, and the availability and work obligations of employees have been clarified.

Are you sure that your intra-Community supply is tax exempt? What documents are required to prove?

As a result of the free movement of goods and globalization, companies sell products to othermember states of the European Union countless times as part of their economic activities. Under certain conditions, intra-Community product sales may be tax-exempt under the Hungarian VAT Act, in accordance with the EU VAT Directive. One of these conditions for tax exemption is that the product is delivered to another member state. Nevertheless, this fact itself is not sufficient, but it must also be proven in the case of a tax audit. In this article we focus only the transportation and the related evidences as part of the legal conditions of the tax-exempt intra-Community transaction, and we do not investigate the further settings.

The Global M&A tax guide has been published

LeitnerLeitner as the a member of Taxand which is the world's largest organisation of independent tax advisory firms, participated in the editing of the Global M&A Tax Guide. It is about local tax rules and developments relating to mergers and acquisitions.

Extra-profit taxes

 The Government of Hungary will introduce an extra-profit tax from 1 July 2022.

VALUE ADDED TAX IN HUNGARY

Value added tax for entities is a pure flow-through, transitory item. Nevertheless, non-deductible pre-tax, falsely assessed VAT and penalties deriving from administrative mistakes can heavily burden the entities’ budget, especially in a country with the highest VAT rate (27% general rate) within the European Union. In the following guideline we will introduce the main principles of the Value Added Tax in Hungary.

Recent tax changes

The following overview addresses recent changes introduced this year so far.

Tax package 2021 June

 As a closing of the spring session, the Hungarian Parliament adopted and promulgated on 9 June 2021 the latest tax package, which essentially contains changes to the tax law for 2022 and partly for 2021. The following addresses the most significant changes.

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.

Tax changes 2021

In the following we focuses on the most important recent tax related law changes. Further amendments are expected with respect to accounting, car tax, excise tax, etc.