Tax changes in Hungary – 2021

The 2020 Autumn Tax Package implemented several smaller and bigger amendments, clarifications in respect of various taxes. The two might most important changes were made in VAT – such as distance selling and e-VAT return –, but these changes will take effect from 1 July 2021 and not from the beginning of the year. This brochure summarizes the changes we consider important.

The main chapters of PS’ SME INFO Nr.2020-20 can be reviewed below.

The full pdf versions of the newsletter are available in English and Hungarian:

Download SME INFO Nr.2020-20 in English here.
Download SME INFO Nr.2020-20 in Hungarian here.
A magyar nyelvű hírlevél ide kattintva tölthető le.

1 Act on Accounting

Accounting for changes in capital reserves

Accounting for dividend claim waived

Extending the range of economic events to be accounted for on a net basis

Tied-up reserve requirement during transformation

Deadline for publication of the annual report for listed companies

Clarification of the concept of headcount

2 Taxation

Corporate tax

Local taxes

Vehicle tax

Value added tax

KATA (fixed-rate tax of low tax-bracket enterprises) and KIVA (small business tax)

Personal income tax

Special tax on financial institutions

Excise duty

Tourism development contribution

Duties

3 Taxation regime

Rules of Taxation

Amendment of the Rules of Taxation in line with the changes in the VAT Act related to distance selling
Electronic Public Road Trade Control System (EKAER)
Vehicle tax
Reliable taxpayer status – group taxation arrangements
Reliable taxpayer status – after the Spring, 2020 emergency situation
Changes in payment facilitations
Clarification of tax deficit interpretation
Permanent and contingent tax assessment

The tax administration regulations

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