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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).

Updated content!
Please visit at the page of SME INFO 2020-19 for the latest content!

The Act LXXVI of 2020, published on 14 July 2020 and establishing Hungary’s central budget plan for the year 2021, contains several changes which will have impact, among others, on the area of taxation. Hereunder we sum up the issues we deem important with the intent of arising attention, but without a claim of being exhaustive.

 

Struggle against tax avoidance or evasion is one of the EU’s political priorities. Exchange of information among the individual national tax authorities in respect of cross-border transactions is an efficient means for this. The reporting obligation concerning aggressive tax arrange­ments is regulated by the Council Directive (EU) 2018/822 of 25 May 2018 or shortly DAC6 Directive, which was taken over into the Hungarian legislation with an effect of 1 July 2020. (This issue is based on the actual DAC6 regulations, so it is to replace SME INFO Nr.2020-13 published on the same topic on 18 June 2020.)