Taxation Package — Spring And Summer 2021 — Hungary

Tax Package – Spring-Summer 2021 – in Hungary – SME INFO 2021-07

The tax package submitted in the spring of 2021 and adopted in June brought mostly minor changes and clarifications. Reviewing the changes in taxation we draw the attention to the reduction in the burden on employer taxes, such as the reduction in Social Contribution Tax and, in parallel, the withdrawal of the vocational training contribution, besides that the implementation of cryptocurrencies’ taxation rules is also an interesting amendment. Several of the changes will take effect already in 2021, some of them are implemented from January 2022 but an early adoption is possible in 2021, and there are changes that will only be introduced in July 2022 or even in 2024. In addition, there have been some other changes during the summer that are also worth noting in this newsletter, which is available both in English and Hungarian.

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

The main topics of PS SME INFO HU Nr.2021-07 you can review in the downloaded pdfs are the next ones:

I Changes in the Act on Accounting

1.1 Changes affecting accounting rules

Exception to the application of project accounting: series production

New option: create accrual for the development subsidies related to intangible and tangible assets

1.2 Other amendments and clarifications

Supplementing the audit report of companies listed on EU stock exchange

Repeals affecting the original cost of an asset

II Taxation

2.1 Corporate income tax

Hybrid entity

Public trust fundation performing public function

Corporate taxpayer group

Allowance for bicycles

2.2 Value added tax

Obligations on payment service providers

Bad debts

Clarification on VAT treatment of import consignments

Possibility of VAT refunds for taxable persons established in the UK

Special VAT refund rules

Other changes

2.3 Personal income tax

Allowance granted to mothers with four or more children

Income from cryptographic assets transaction

Allowance for bicycles

2.4 Social contribution tax

Rate

Changes related to the allowances

Effect of abolishing the vocational training contribution

2.5 Special tax on financial institutions

2.6 Income tax of energy suppliers

2.7 Excise duty

2.8 Duties

The range of exempt recipients is expanding

Company with domestic real estate holdings – The method of mid-year qualification changes

2.9 Custom duty

2.10 Measures to prevent money laundering and terrorist financing

2.11 Additional mining royalty

2.12 Self-billing and online data submission

III Taxation regime

3.1 Rules of taxation

Changes affecting registered office services providers

Extending the content of the monthly tax and contribution declaration

Arm’s length price

Rules on default interest and self-assessment penalty

3.2 Tax administration regulations

Further restriction of the right to access to documents

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

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