You can read the Mazars Hungary’s tax newsletters. We would like to inform our clients and partners about actual tax news.
New tax breaks and government decrees introduced in connection with the state of emergency
Due to the Covid-19 emergency a number of measures at the level of government decrees has been taken and will certainly be taken to curb the virus and protect the economy.
Autumn tax package submitted to parlament
Parliament is expected to vote on the autumn tax package on 17th of November 2020. The proposal on the tax law changes for 2021 was submitted on 13 October 2020 by the Minister of Finance to the Parliament.
The taxation effects of the new system of adult education
As surprising as it may sound to many people, but several aspects of the work of financial specialists is also affected by the changes in the Hungarian adult education introduced in 2020. As a consequence of the recent amendments, the scope of the Adult Education Act has been changed significantly, meaning that – among many other tasks – registration and reporting obligations now also apply to several forms of education and training that could be freely organized previously with much less administrative burden.
Attention! Important deadline! Choosing to enter into corporate income tax groups until 20 November
Hungarian affiliated enterprises have had the opportunity to form corporate income tax groups for nearly two years, since 1 January 2019.
The deadline for submitting refund applications for VAT paid abroad is approaching
Domestic tax subjects entitled to deduct VAT have an opportunity until 30 September 2020 to claim VAT refunds on the basis of invoices in 2019 with respect to purchases made in other member states of the European Union. After this peremptory deadline, the right to the refund is forfeited!
The pandemic may also affect the tax liabilities of cross-border commuters
Of the many impacts of the COVID_19 pandemic, one of the most significant is the remarkable decline in the mobility of private individuals. The negative effects of this on the international and national economies are beyond question.
NAV to audit the use of CIT credit for energy efficiency increasing investments
A tax credit has been available from the corporate income tax (CIT) after investments serving the purpose of increasing energy efficiency. Therefore, it is worth examining in case of a planned investment if energy efficiency improvement is achieved, since in such a case the business may reduce the amount of the income tax due by up to 70%.
Deadline for reports on cross-border tax structures have been extended
In July 2019, Hungary adopted the provisions of EU Council Directive 2018/822 (hereinafter: DAC6 Directive) on the data reporting obligation for cross-border transactions. In addition to imposing several burdensome liabilities on consulting firms, it is important that taxpayers themselves may be required to provide information in certain cases.
Changes in the system of KATA from 2021
At the end of June, the Government proposed some amendments to the legislation on the itemised tax of small businesses (“KATA”). One of the main aims of the changes is to prevent and eliminate unlawful tax avoidance practices. Many companies use the KATA system as an alternative to employment, which reduces the tax revenues of the state.
Changes in social security laws – things you should pay attention to in the summer of 2020
Over the course of the past few months, the COVID-19 pandemic has significantly changed the macroeconomic situation, and countries all around the world typically tried to use similar tools, mainly in the framework of accelerated legislative procedures, and involving the creation of targeted rules for the protection of the economy, to keep these changes under control. In Hungary, many of the Government decrees passed in recent types were also aimed at smoothing the waves of these effects.