Hungary introduced an extended EPR obligation starting 1 July 2023. The country already had implemented EPF or green tax fee on those businesses first introducing packaging material, electronic equipment, battery cells, or chemical products in the Hungarian market. The main difference with the EPF is that fees are significantly higher, and some product categories may differ. Also, the […]
The system offers an alternative to preparing and submitting VAT returns via the ÁNYK framework and will be available to taxpayers from 1 January 2024. By introducing the VAT return system, the tax authority intends to:
E-VAT: The proposal repeals the provisions relating to the tax authority offering draft VAT returns, which means companies will have to bid farewell for now to the introduction of the eVAT system. Reverse charging: The reverse charge on the supply of certain cereal and steel products and on the transfer of the marketable right (allowance) on greenhouse gas emissions would be extended […]
The social security contribution base is the gross income paid to the employee. The employer's contribution rate (so-called 'social tax') is 13% (the rate of social tax has been reduced from 15% to 13%, additionally the 1.5% vocational training fund contribution has been abolished from 1 January 2022). The employees' social security contribution rate is […]
In view of the emergency declared in connection with the spread of the coronavirus, if taxpayers are unable to meet their payment obligations due to the economic consequences of the epidemic or the emergency, they may apply for a payment discount (deferral, installment, reduction) to NAV. For taxpayers (individuals and businesses) who invoke the economic […]
Fom January 1, 2021, the KATA regulations have changed significantly. By paying the tax, the company is still exempt from the obligation of pazicorporate tax, personal income tax, social contribution tax, social security contribution and vocational training contribution. The subjects of KATA can be sole proprietors, sole proprietorships, law firms, as well as, among companies, […]
The upper threshold for the income/balance sheet total of companies wishing to apply for the small business tax scheme will be increased from HUF 1 billion to HUF 3 billion, while the exit threshold will be raised from HUF 3 billion to HUF 6 billion, which will result in an increase in a number of businesses falling under the scope of the […]
The bill plans to change the rules of the itemized tax of small business taxpayers, which will become effective on 1 January 2021, based on the taxpayer’s foreign interests. The change will concern the income received by the small taxpayer from a foreign legal person classified as an affiliate or from foreign customers and the […]
There are several changes in the regulations of accountancy, VAT, corporate tax, small taxpayers tax, personal income tax, excise duty, local tax, social contribution tax, health contribution. Changes in accountancy regulation from 2020 Private entrepreneurs may establish one-person limited liability companies (Kft.). Depreciation of the small value assets - the limit for immediate depreciation rises […]
Personal income tax Mothers having four children are entitled to full exemption from personal income tax. Social contribution tax The social contribution tax decreases from 19,% to 17,5 %. Local business tax The only way to submit a tax return through the NAV system if it was correct. VAT The VAT rate of hotel and […]
VAT changes 50 percent of the VAT on car leasing is not deductible if business use is not clarified It is needed to examine relation to the business activity. If the taxable person eligible for a tax deduction it can apply the 50 percent VAT deduction regardless the actual level of business and private use. […]
The Hungarian Government presented its new tax package and a draft law on the social contribution tax on 19 June 2018. Personal income tax SZÉP card remains the only fringe benefit. From 1 January 2019, the three sub-accounts of the SZÉP cards would remain the only way to provide fringe benefits at a reduced tax […]
Regulation (EU) 2016/679 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data. The regulation is an essential step to strengthen citizens' fundamental rights in the digital age and facilitate business by simplifying rules for companies in the digital single market. A single law […]
The filing of tax return is based on self-assessment. The tax authority prepares a plan for the tax return of private individuals who are not entrepreneurs on the basis of the available data. This plan becomes final if the private individual accepts it or he/she does not file the tax return in any other way. […]
Rental income arose from residential property will be subject to a 15% individual income tax (as earlier) health care charge of 14% will be dismissed even income is higher than HUF 1 million / year. Increase in amount of housing allowance to facilitate mobility that can be provided tax-free. Alongside modifying the detailed rules, the […]
The VAT rate on Internet access services will be reduced from 18% to 5% and the VAT rate on fish products will be reduced from 27% to 5%. The reduction of the limit requiring detailed VAT reporting (monthly returns, domestic statements) from HUF 1 million to HUF 100,000, which was planned to become effective as of […]
Itemised tax of small businesses (“KATA”) From next year full-time students registered in institutes of secondary or higher education will no longer be considered as full-time entrepreneurs, which means that they can will only have to pay 25,000 HUF as the small taxpayer’s flat tax instead of 50,000 HUF. Under current regulation “ KATA” subject […]
Hungarian legislation had a new requirement for all business organizations to arrange their official affairs through a safe, secure platform. Business organisations included in the company register must register their contact details used for electronic communication (business gate) at the register for administration orders (hereinafter referred to as: E-Administration Register) or at the court of […]
The Hungarian healthcare system is largely free of charge for anyone who can provide a Hungarian social insurance number and card (TAJ szám, TAJ kártya) or who holds a valid EU International Health Card (EHIC). Medical services in Hungary are substantially financed by the state budget, which takes a monthly contribution from every locally contracted […]
The aggregated tax base can be reduced with the family allowance (Családi Adókedvezmény). The volume of the family allowance is equal to the fixed allowance amount multiplied by the number of “beneficiary dependent children”. The calculation of the family allowance takes into account the number of dependent children of the tax payer. In case of […]
Those who let out their homes and university students in the small taxpayer category may expect further significant easing of red tape and lower liabilities. The bill will make both the short- and long-term letting of residential properties easier. Provided the National Assembly approves the proposal, owners of rented homes will as of next year […]
According to the new law, businesses issuing invoices with VAT value of more than HUF 100,000 (EUR 320)- including all modification invoices that relate to the original invoice - must report these invoices online in real time to the Hungarian Tax Authority. The new law also applied to the Hungarian VAT registrations of the foreign […]
Several VAT rates are used: it has been long overdue in the case of food, the reduction of VAT in hospitality has not really been thought out in detail, and the reduced VAT rate of the Internet is rather a political will than an economic decision. The reporting obligation concerning online billing is significantly tightened […]
Fringe benefits In accordance with the changes of Act CXVII on Personal Income Tax (hereinafter: PIT) which comes into effect from 1 January 2017 will only be possible to grant fringe benefits to employees on the basis of two legal categories as follows: SZÉP Card’s annual frame amount is not changing, payments can be transferred […]
From year 2017, the opportunity of filing tax return proposals or simplified tax declarations will be overruled. The draft tax declaration will take the previous two methods’ place, and will be based on data reported to the tax authority during the year. The tax authority will prepare draft PIT return for taxpayers who either did […]
The supply of certain medical services generally qualifies for exemption from VAT. Provisions for the VAT exemption applicable to medical services are contained in Paragraphs 2(3) and 2 (7) of Schedule 1 to the Value - Added Tax Consolidation Act 2010. Details of the relevant provisions are as follows: Professional medical care services recognized as […]
Personal income tax The aim of personal income tax is for private individuals to contribute to public dues and to ensure tax revenues for the state and municipal budgets. Taxpayers Resident tax payers shall be subject to tax liability in respect of all their income (all-inclusive tax liability). The tax liability of non-resident private individuals […]
Advertisement tax The publication or commissioning of advertisements in media services, in media published or distributed in Hungary, on outdoor advertising spaces, properties, vehicles, printed materials or on the internet in Hungarian or on a Hungarian language website is taxable in Hungary. Taxpayers are the media content providers and news publishers that qualify as the […]
Royalties received In Hungary, companies are obliged to pay corporate income tax on their income obtained from business activities performed for profit and other similar activities. Provided that certain conditions are fulfilled, 50 percent of the revenues accounted as royalties reduce the tax base. The amount of this tax base reduction may not exceed 50 […]
Hungary: Parliament Approves VAT Cuts for 2017 On June 7, 2016, the Hungarian Parliament approved Bill T/10537, a supplementary tax package to the Ministry of Economy’s 2017 budget. As previously reported, the bill applies a 5% reduced VAT rate to sales of poultry, fresh milk, and eggs, an 18% reduced VAT rate to restaurant services, […]