The Association of Tax Advisors also awaits administrative reduction measures – comments and suggestions for the 2025 tax and budget draft laws

Budapest, Monday, November 11, 2024 - The document entitled Hungary's Medium-Term Fiscal-Structural Plan 2024 projects favorable changes to our country's tax environment in several respects. However, based on the experiences of recent years, many have developed the impression that the promises made to change the favorable tax environment have always meant more and more administrative burdens for businesses, therefore – knowing the measures planned for next year – it is not bad to be cautious about the contents of the document now.

The Association of Tax Advisors also awaits the measures planned by the government to reduce administration – comments and suggestions for the 2025 tax and budget bills. The document entitled Hungary’s Medium-Term Fiscal-Structural Plan 2024 projects favorable changes to our country’s tax environment in several respects. However, based on the experiences of recent years, many have developed the impression that the promises made to change the favorable tax environment have always meant more and more administrative burdens for businesses, therefore – knowing the measures planned for next year – it is not a bad idea to be cautious about the contents of the document now.

Our association expects that, contrary to previous similar promises, the reduction of administrative costs of enterprises, improvement of their digitalization, further narrowing of tax avoidance opportunities, and ensuring the error-free, timeliness and flexible usability of data used for decision-making purposes and serving public administrative processes will finally be realized, so that it will not represent an additional administrative burden. The Association of Tax Advisors recommends the permanent abolition of special taxes that are not planned to be phased out in 2025, that destroy predictability and ultimately appear in consumer prices – especially the retail tax. We also recommend a review of the so-called small taxes, as well as the rules of the Personal Income Tax Act, which are almost opaque to both enterprises and private individuals, and the elimination of all those that practically do not bring additional budget revenue due to their administrative costs. The document sent to the EU also includes the introduction of the event-based data reporting platform (EMAP), which would simplify the income statements and declarations of businesses as planned. The Association of Tax Advisors - for the umpteenth time - willingly offers its extensive experience accumulated by its nearly thousand-member membership over the past decades to improve the tax environment and implement tax administration reduction, including involvement in the work related to the introduction of the event-based data reporting platform (EMAP).

November 11, 2024. National Association of Hungarian Tax Advisors and Accounting Services Publisher: Hungarian National Association of Hungarian Tax Advisors and Accounting Providers