More than a thousand companies have decided to perform the corporate income tax as a member of a so-called corporate taxpayer group, which may result in a total savings of HUF 15 billion for the companies. One of the greatest advantages of the corporate taxpayer groups is the offsetting of positive and negative tax bases, better use of tax incentives, and the non-applicability of transfer pricing rules.
According to the Hungarian Government, the new rules can increase Hungary’s competitiveness, and many foreign investors can be attracted to our country, helping Hungary becoming an investment destination.
Almost without exception, all sectors were concerned by the new tax form. More than 200 corporate taxpayer groups filed their application with the tax authority at the beginning of 2019. In average, the groups consist of 2-5 companies, but there are groups with 65 members.
By Levente Csengery, Partner, KCG Partners Law Firm