The summer amendments of tax laws from July, 2019

by | 2019 Nov. 7. | Angol | 0 comments

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 accommodation services is 5%.

Advertising tax

The rate of advertising tax will be temporarily reduced to 0% from 1, July, 2019 until 31. December, 2022.

Health service contribution

The amount of the health contribution will be 7 710 Ft from 1, January, 2019.

EVA

The simplified entrepreneurial tax (EVA) in Hungary is to be canceled from 1, January, 2020.

KIVA

The rate for small business tax (KIVA) is to be reduced from 13% to 12% from 1, January, 2020.

EKHO

The bill would allow employees of international sports organizations to choose the simplified contribution to public revenues (EKHO). Allowances granted as part of sports diplomacy would also be exempt from tax.

Corporate tax

The provisions related to exit taxation are to be supplemented, while provisions are being introduced on tax evasion stemming from different legal classifications of the same situation.

Transfer pricing

Based on the amendment, transfer pricing rules are applicable in the event of non-cash contributions not just for existing controlling members, but also for members (shareholders) becoming controlling members (shareholders) with non-cash contributions.

International tax cooperation

The bill implements the obligation from the DAC 6 Directive that is set for intermediaries to report data to the tax authority in relation to cross-border arrangements. The reporting obligation does not apply to VAT, excise tax and contributions. A default penalty of up to HUF 500,000 (roughly EUR 1,560) can be imposed upon failure to comply with the reporting obligation, or in the case of delayed, incorrect, false or incomplete execution thereof. The penalty can total up to HUF 5 million (roughly EUR 15,600) if the obligation is not met, or not lawfully met, by the deadline given by the tax authority in Hungary for the reporting. The first reporting deadline is 31 August 2020 (for the period between 25 June 2018 and 1 July 2020). (Source: WTS Klient)