What does the proposed tax package for 2020 bring?
On 4 June, two tax bills were submitted to the Hungarian Parliament: in addition to the tax package containing elements of the recently announced economy protection action plan (bill no. T/6351), the EU legal harmonization amendments necessary in connection with the DAC6, ATAD and VAT directives were included in a separate bill (no. T/6349).
The bill includes the tax exemption of mothers of four children, the elimination of the year-end top up obligation of corporate income tax and innovation contribution, the decrease of the VAT rate for accommodation services, as well as the extension of the scope of those entitled to the development tax incentive. In the spirit of simplification, the simplified entrepreneurial tax (“EVA”) will be eliminated, and the administrative burdens related to local taxes will be reduced.
In the following newsletter, we will highlight the most essential new or amended provisions, among which several novelties will enter into effect already this year, after the promulgation of the new law.