Surprisingly, Hungary did not support the adoption of the EU Directive at the ECOFIN meeting on 17 June, thus the level of uncertainty remains high around the introduction of the global minimum tax scheme.
The bill for the new KATA (itemised tax of small businesses) Act was submitted to Parliament on 11 July 2022 and passed into law the following day with much more stringent rules. Many small businesses will be now excluded from the scope of this favourable taxation scheme, which cannot be compensated by the increase in the income threshold either.
Windfall tax and additional tax increases: waiting for further details
The government announced at the end of May that special taxes would soon be introduced to adjust the central budget so that the planned deficit targets (4.9% of GDP this year and 3.5% of GDP next year) may be achieved. These targeted taxes will be levied in 8 sectors where the Government believes extra profit is generated and thus, introduction of a windfall tax is justified.
The pandemic state of emergency will end on 1 June 2022 and along with that new rules on teleworking, incorporated into the Labour Code and Labour Protection Act, will enter into force. In the following newsletter we summarise the most important changes.
The deadline of 31 May for the declaration of corporate income tax, local business tax for 2021 is approaching
We are sure that most companies have already prepared their annual calculations for corporate tax, local business tax and the innovation contribution. However, it is worth taking a moment to think about whether we have considered everything.
A new form of support to assist the employment of Ukrainian refugees
On 10 March 2022, Government Decree No 96/2022 (III. 10.) on support for the employment of persons with Ukrainian citizenship arriving from the territory of Ukraine was published in the Hungarian Official Gazette. In our newsletter, we briefly describe the main rules and conditions of the support.
Ban on the export of cereals: The government decree restricting exports has been promulgated
On 6 March 2022, a government decree prohibiting the export from Hungary of certain raw materials and products (such as cereals) of strategic importance from the point of view of the security of food and animal feed supply entered into force. The news came as a surprise to Hungarian cereals exporters.