Growing inflation and budgetary limitations are the key challenges faced by Hungary's newly elected parliament, according to Jalsovszky Law Firm Partner Tamas Feher.

In “The Corner Office” we ask Managing Partners at law firms across Central and Eastern Europe about their backgrounds, strategies, and responsibilities. The question this time: Who was your favorite professor in university and why?

Havel & Partners and Jalsovszky have advised Focus on Clever Technology on its acquisition of a 50% stake in BubbleStar and Global TS from Scorpione CZ s.r.o. Matzner et al advised the buyers as well while solo practitioner David Zavadil advised Scorpione on the deal.

Kinstellar has advised US-based X-Chem on its acquisition of Hungary's ComInnex.

 In “The Corner Office” we ask Managing Partners at law firms across Central and Eastern Europe about their backgrounds, strategies, and responsibilities. With summer having just passed, the question this time: What is your one favorite yearly activity to disconnect?

In “The Corner Office” we ask Managing Partners at law firms across Central and Eastern Europe about their backgrounds, strategies, and responsibilities. The question this time: “What did you most want to be when you were little?”

A common stereotype prevails that banking contracts are non-negotiable, and borrowers hardly have a say in the terms of their contracts. However, this is not the case: like any economic operator, banks are also willing to compromise. Banks’ flexibility varies depending on who and when is seeking preferential treatment and on the contractual terms subject to negotiations.

Jalsovszky has advised Luma Automation S.A. on the acquisition of a 100% shareholding in IronTech Zrt. from Tibor Bochkor. Jalsovszky has also advised Raiffeisen Bank and CIB Bank, as lenders granting financing for the acquisition. 

Jalsovszky has advised Janos Kubinszky on the sale of a 100% shareholding interest in KTT Kft. to Axel Johnson International. Ernst & Young advised the buyer on the deal.

“The tax number of one of my companies was deleted due to some blunder, but we corrected it” – so begins a widely-known and innocent story that could happen to anyone. Then we realise in terror that due to this “blunder”, the Court of Registration refuses to register our company, or that the tax authority wants to delete the tax number of one of our existing companies. Could this have been avoided? What can be done?

For our Checking In feature, we reach out to partners and heads of practice across CEE to learn how specific practice areas are faring in their jurisdictions. This time around we asked Tax experts: What are the most important changes to the Tax laws in your country since January 2020 and what has their impact been? 

Jalsovszky has advised Hungarian energy and real estate developer Callis Energetika Zrt. on its sale of an 8,300-square-meters plot to Atenor Hungary. CMS advised the buyer on the deal.

2021 could greatly simplify the parcelling of jointly owned arable land. Also, the new rules will settle the status of land registered in the name of unidentifiable owners. At the same time, a clearer and more transparent title structure could not only enhance farming efficiency but also boost greenfield investments.

First reports under DAC6 were due recently from those who are parties to a cross-border transactions. Concurrently, at the last possible moment, the Hungarian Ministry of Finance published a Guide on certain issues related to the fulfilment of the reporting obligation. It is advisable, in particular, for accountants, consultants, lawyers and banks to carefully study this 38-page document, as any of them could easily fall within the scope of the reporting obligation.

The European Court of Justice has just put an end to an uncertainty that has weighed heavily on the pockets of property developers for years. Not only did it confirm that the VAT on what are known as “public purpose” investments can be deducted, but also that the obligatory transfer of ownership of such investments does not give rise to a VAT liability even if the investment is essential for the developer’s own economic activity.

Reclaiming VAT on bad debts under the new 2020 rules may well conjure up images of a TV show obstacle course.  Initial experiences suggest that anyone trying to reclaim VAT will be up against the wall. But the undertaking isn’t unfeasible.

Who hasn’t queued at the in-store customer service desk to have their warranty stamped? Who hasn’t spent hours figuring out which brand service centre to take a faulty product to? And there are many more, similar nuisances we could add. However, changes in the warranty regulations are set to put an end to these from next year. But what’s good for consumers represents a major additional burden for vendors.

"I have a Slovak address card, so I don’t have to pay taxes in Hungary…" "I just have to make sure not to spend more than 183 days at home". "I’m a digital nomad, I don’t pay taxes anywhere." Many similar misconceptions circulate in Hungary regarding the rules of tax residence. However, tax regulations are “much smarter” than that and those who follow false illusions may even be exposed to criminal liability.