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Preparation of an Anti-Tax Evasion System in Hungary

Preparation of an Anti-Tax Evasion System in Hungary

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According to the announcement of the state secretary for tax matters issued in February 2019, the Hungarian Ministry of Finance is planning to introduce a new system that prevents multinational companies to avoid tax burdens in Hungary.

Due to the reform of the Hungarian tax system in 2011, Hungary has become one of the best investment locations in the European Union. One of the most important elements of this reform is the 9% corporate income tax, that is currently the lowest in the European Union. In 2018 98 large investment projects were realised through the investment promotion system, that created over 17,000 new jobs and the total value of these investment exceeds HUF 1380 billion. However, according to the state secretary, the beneficial corporate taxation should not result in tax evasion of multinational companies. 

The European Union regulations will serve as benchmarks and models for the creation of the new anti-tax evasion system. According to the state secretary, the Ministry of Finance organised a tax conciliation forum in March 2019, where 23 professionals are invited in order to consult the details of the new system. The Ministry of Finance expects that the new system will be able to prevent the tax evasion of the multinational companies carrying out economic activities in Hungary

By Eszter Kamocsay-Berta, Managing Partner, KCG Partners Law Firm

KCG Partners at a Glance

KCG Partners is a Hungarian business law firm providing a comprehensive range of legal services to international and local clients seeking local knowledge and global perspective. The firm comprises business-minded lawyers with sector-specific expertise, creating value for clients by applying a problem-solving approach and delivering innovative solutions.

The firm has a wealth of knowledge in corporate law, M&A, projects and construction, energy, real estate, tax, employment, litigation, privacy and forensics, securitization, estate planning and capital markets.

To address clients’ regional and international concerns, the firm maintains active working relationships with other outstanding independent law firms in Central and Eastern Europe, whilst senior counsel Mr. Blaise Pásztory brings over 40 years’ of US capital market and fund management experience.

KCG Partners Law Firm is the result of the teamwork of passionate and talented lawyers guided by the same principles and sharing the same values: 

  • Our most valuable asset is our people. They are the engine of our business and the key to our success.
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Firm's website: http://www.kcgpartners.com