In our newsletter, we have summarized the key changes in the autumn tax package.    PERSONAL INCOME TAX Starting from next year, the family tax allowance for children will be increased in two phases: on July 1, 2025, it will rise to 1.5 times the current amount, and [...]

The Council reached general approach on the VAT in the Digital Age proposal during the ECOFIN summit held on the 5th of November 2024. Following a re-consultation with the European Parliament, the Council will have to adopt the proposal before entering into force. As mentioned in our earlier [...]

Enterprises with fiscal years following the calendar years may submit their application to the national tax authority between the 1st and the 20th of November if they wish to benefit from the group taxation for corporate income tax purposes from the next fiscal year. This 20-day period is [...]

The European Court of Justice (CJEU) in the Hungarian-related case C-248/23 Novo Nordisk A/S has ruled that the statutory payment made by medicine distributors under the medicine-distribution act, commonly known as the ‘medicine tax’, qualifies as a discount for VAT purposes resulting in the reduction of the taxable [...]

Domestic taxable entities can reclaim VAT charged in EU Member States and six non-EU countries this year, subject to specific conditions. To facilitate these claims, refund applications must be electronically submitted to the Hungarian Tax Authority by completing the ELEKAFA form no later than September 30 following the [...]

As the deadline for corporate tax returns approaches (along with the requirement for detailed reporting on related-party transactions), and there may be a need to adjust the applied transfer prices, it is worth considering whether such adjustments also have VAT implications. At first glance, one might raise an [...]

Starting from December 31, 2023, in addition to the corporate tax base relief applicable for direct costs of basic research, applied research, and experimental development carried out within its scope of activities, a new R&D tax incentive is available. With this incentive, the calculated corporate tax can be [...]

Has your company missed out on reporting its participation to the Hungarian Tax Authority? There is an opportunity to make up for it, but it is subject to certain conditions! The tax law amendments published by the end of November have included a significant provision in relation to [...]

The National Assembly adopted on November 21 the legislative proposal on the autumn tax package as well as the proposal on the introduction of the Global Minimum Tax in Hungary. In our newsletter, we will summarize the significant changes. VAT The long-awaited draft VAT return is coming. Detailed [...]

As discussed in our previous tax newsletter, the United States have sent an official notification to Hungary last summer in which the United States made it clear that it unilaterally decided to terminate its effective tax treaty with Hungary on the avoidance of double taxation (hereinafter: Treaty). Considering [...]

The Government Decree 80/2023 (III. 14.) (hereinafter EPR Decree), which sets out the detailed rules for the operation of the extended producer responsibility system, was published in the Hungarian Official Gazette no. 37 in 2023. The basic principle of extended producer responsibility is that the costs of waste [...]

In our previous newsletter we have introduced the reader to the key measures of the “VAT in the Digital Age” Council proposal. Now we will be focusing on the most considerable first pillar, namely the introduction of the standardized EU-level invoicing and invoice data reporting and give a [...]