Newsletters

The purpose of SME INFO HU 2021-07 (available both in English and Hungarian) is to provide general information and to draw the attention to the current changes in Tax Package of Spring and Summer 2021 which we believe to be important for the business operation in Hungary.

The new rules applicable to e-commerce activities will enter into force on 1 July 2021. The goal of the change is making the VAT declarations more effective and simplifying VAT administration.

Last minute tax law amendments introduce significant changes to the personal income taxes from 1 January 2021. The three most important ones are: abolition of the ’super gross’ system for calculating income tax base, implementation of 2nd tax rate of 23% for high incomes and an increase of the basic tax credit.

 

The 2020 Autumn Tax Package made many smaller and bigger amendments and clarifications in respect of various taxes. Our SME INFO Nr.2020-20 brochure summarizes the changes we consider important.

On 3 November 2020, the Hungarian Government announced again a danger situation in view of the coronavirus epidemic, which was extended by the Parliament by 90 days on 10 November, so the emergency will last until 8 February 2021.

As from 2020 on, also with the intention of IFRS harmonization, project accounting and the method of accounting for sales revenue based on the completion degree of the project was introduced in the Hungarian Act on Accounting. This change can have significant effect on the annual report and the profit of companies meeting the criterias of applying project accounting (e.g. in the building industry).