30-11-2022
Tax
Hungary
Corporate income tax, Corporate taxpayer group, VAT, E-receipt, Small business tax (KIVA), Extra profit taxes, Local Business Tax, Personal Income tax
The full versions of the newsletters are available as pdf either in English and Hungarian:
Download in English:
Autumn tax package 2022 – Changes to tax and accounting laws – PS SME Info Hu nr.2022-05
Töltse le a hírlevelet magyarul:
Őszi adócsomag 2022 – Adó- és számviteli törvényváltozások – PS SME Info Hu nr.2022-05
The autumn tax package contains few significant changes, it is mostly characterised by clarifications and additions to help interpretation, but there are many of these. The most exciting change seems to be a corporate tax report in line with an EU directive, but this will not be introduced until mid-2024. In view of its timing and length, this report will be the subject of a separate publication.
Responding to their needs we will also produce a separate publication for our payroll clients, summarising mainly those tax issues and amendments to the Labour Code that affect them.
This publication – presenting the changes we think are relevant for our clients – is a general guide to the accounting and tax law changes that will most affect accountants.
In the meantime, two new government regulations have been published in the field of extra-profit taxes. Although they are not part of the “official” autumn tax package, we cover them in this edition for timing reasons.
1 Corporate income tax (CIT)
1.1 Exemption of trusts – clarifications
1.2 Loss carry forward
1.3 Modification of the existing corporate tax base allowance
1.4 Corporate taxpayer group
1.4.1 Termination of a group member without legal successor
1.4.2 Tax advance rules
2 Personal Income tax (PIT)
2.1 Allowance for Young People Under the Age of 25 Years
2.2 Special employment of foreign individual
2.3 Expansion of regulation related to trusts
2.3.1 Income from capital gains
2.3.2 Income from long-term investment
2.3.3 Securities obtained under SESOP
3 Value Added Tax (VAT)
3.1 Expanding the scope of taxable real estate sales
3.2 Reverse charge procedure
3.3 E-receipt
3.4 Distance sale
3.5 Reduced VAT of newly built residential properties
4 Small business tax (KIVA)
4.1 Transition rules
4.2 Expiry of KIVA status
4.3 Average statistical number
5 Local Business Tax (LBT)
5.1 Simplified tax base definition method
5.2 Change in the transfer pricing certificate
6 Advertising tax
7 Financial transaction duty
8 Social contribution tax
9 Social security
10 Duties
10.1 Transfer of real estate between related parties
10.2 Modifications for trusts
10.3 Cancellation of duty stamp
11 Rules of taxation
11.1 Administrative service fee for establishing the arm’s length price
11.2 Taxpayers with large tax deficits and tax arrears
12 Tax administration
12.1 Restriction of the justification request
13 Modifications to other laws
14 Another extra profit tax was implemented
14.1 Energy sector
14.2 Airlines
15 Act on Accounting
15.1 Amendments affecting accounting rules
15.1.1 Accruals of expected grants and subsidies
15.1.2 Change of retained earnings in the balance sheet of business associations established by way of transformation
15.1.3 Shares in organizations operating in an institutional form
15.2 Other additions and clarifications
15.2.1 Value limit for simplified annual financial statement and audit obligations of companies created by legal succession
15.2.2 Short-term part of financial leasing
15.2.3 Supplementary notes of simplified annual financial statements
15.2.4 Reporting requirements of companies preparing annual financial statement under IFRS
15.2.5 Addendum to the auditor’s report on corporate income tax information report
15.2.6 Concept of average number of employees