New tax return rules
Corporate income tax returns shall be submitted only electronically, using a valid electronic signature, as of 1 January 2018. Also, both corporate and personal income tax payers are entitled to submit a one-off correcting tax return in the case of mistakes identified in the annual tax return by 30 September of the year in which […]
Proportional VAT deduction
Taxable persons will be obliged to claim proportional VAT credit upon the acquisition of non-current assets with mixed (both private and business) use. The deductible proportion will be determined on the basis of certain criteria that take into account the type of the asset.
Increase of minimum insurable income
The minimum insurable income threshold has been increased along with the minimum monthly salary from EUR 214 to EUR 235 as of 1 January 2017. The thresholds of the insurable income vary with respect to different economic activities and professions and affect social security and health insurance contributions.
Country-by-country reporting (CbC) effective from 2016
The obligations of country-by-country reporting will be implemented in Czech law. It will be mandatory for multinational groups of entities whose aggregate consolidated income amounts to at least EUR 750 million. The first reporting periods are periods beginning on or after 1 January 2016.
Second stage of electronic recording of sales
The second stage of the electronic recording of sales, applying to retailers and wholesalers, was launched on 1 March 2017. Some questions were subject to extensive discussions, for instance, who will record (and when they will record) cashless payments made via the Internet, cash received on delivery, and foreign source sales.
Electronic recording of sales for cash-on-receipt
The General Financial Directorate published guidelines regarding the electronic recording of sales for e-shops and other businesses that dispatch goods via carriers which also receive payment. The reporting method primarily depends on the contractual terms and conditions set with the carrier.
Lowest corporate tax rate in EU
A flat 9-per-cent corporate income tax rate (instead of the earlier 10% / 19% progressive rate) would mean a significant advantage for larger Hungarian companies against their competitors within the CEE region.
Decreasing employment tax burden
An important measure of the Government’s employment boosting programme is the gradual decrease of the employers’ social security payments. As the first step, employers’ social security contributions would decrease from 27% to 22% from 2017 (with a further decrease envisaged over the following years).
“Tax audit radar” available on Tax Authority webpages
The places and dates for planned tax audits affecting a specific circle of taxpayers (defined by their type of business activity or geographical area of operation) are now published weekly, from March 2017, on the webpages of the Hungarian Tax Authority.
Ukraine joined FATCA
On 7 February 2017, Ukraine and the USA signed an intergovernmental agreement by which Ukraine joined the USA Foreign Account Tax Compliance Act (FATCA), which is aimed at improving the performance of tax rules and prescribes tax information exchange.