In September 2019, the Hungarian Supreme Court (Curia) stated in its decision that even in case of a warning strike, the employer must be notified on the strike at a time that allows the exercise of its right to prevent damages caused by the stop of operations, and also to perform its obligation to protect life and property and to perform any organisational work related to these rights and obligations.
Every single business that trades with the UK, both in goods and services, will be affected by a “no-deal Brexit” scenario, i.e. the withdrawal of the UK from the EU without an agreement. On 4 September 2019 the Commission published a “Brexit preparedness checklist”, to provide information and to help enterprises conducting business in the EU and/or in the UK to double-check their state of preparedness.
On 10 September 2019 the newest edition of Incoterms rules, Incoterms 2020 was released by the International Chamber of Commerce (ICC). The Incoterms rules serve as significant commercial provisions for the international sale of goods, including commonly accepted definitions and rules relating to the delivery of goods between trading partners. Since the first publication of Incoterms rules in 1936, ICC has revised regularly these rules to follow the changes in the worldwide trade system.
From 1 January 2020 a new European Union Directive (nicknamed „Quick Fixes”) will enter into force. Among several changes, rules that regulate the customer VAT numbers has been reformed. Under the new reform, obtaining a valid VAT number that the customer provides to the supplier will be regarded as a material requirement for applying the 0% VAT rate. If the supplier fails to include the customer’s VAT number on the invoice, it should not be possible to apply the 0% VAT rate. In addition, filing of a cumulative declaration is also required to invoke the 0% VAT rate. The Directive puts higher administrative burden on undertakings, since it expects a constant inspection mechanism for the validity of the customer’s VAT number at the time of sale.
As a result of an amendment to the Hungarian Condominium Act, a new register for condominium officers will be set up as of 1 January 2020. The aim of the registry is to keep the data of the officers (common representatives and chairman of the administrative committee) in a national, public and electronic registry, to ensure the transparency of the operation of the condominium and the efficiency of the legal supervision of the city notary over the condominiums, and to facilitate the appropriate communication in the course of authority proceedings affecting the rights and obligations of the condominium and the community.
The Hungarian legislation introduced the asset management foundation as a new type of asset management in March 2019, which is very similar to the well-known trust. According to the bill on amending certain tax laws submitted by the Hungarian Government in June 2019, the foundation performing asset management will be considered as a taxable person for corporate income tax purposes. The foundation must fulfil its tax liability in the same way as the assets managed by a trust. However, if the foundation established by a natural person in favour of a natural person beneficiary has income only from financial instruments or from the exercise its rights of disposition of such instruments, the income from such activities are not taxable for corporate income tax purposes.
On 29 May 2019 the EU Commission published a guidance on the interaction between the Regulation on the free flow of non-personal data (FFD Regulation) and the General Data Protection Regulation (GDPR). In particular, private businesses, notably small and medium-sized enterprises and other entities which process data in the course of their professional activities, will benefit from the guidance.
The personal income tax exemption for mothers with four or more children will come into effect as of January 2020. In connection with the seven-step family protection action plan starting on 1 July 2019, this is another significant benefit for mothers. The tax exemption does not affect the family tax advantage, which can still be claimed by both parents.
The Member States of the European Union shall bring into force the laws, regulations and administrative provisions necessary to comply with the EU Directive 2017/828 which establishes requirements in relation to the exercise of certain shareholder rights attached to voting shares in general meetings of companies by 10 June 2019. The most sensitive part of the directive is that it makes the remunerations of the directors public.
On 1 April 2019 the Hungarian Parliament adopted a new act on the amendments necessary for the implementation of the European Union’s data protection reform (“Data Protection Reform Act”). The new act has a comprehensive nature, as it aims to finalise the implantation of the data protection reform in the affected (more than 80) sectoral laws.