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:

 

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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