The Hungarian Parliament approved certain amendments to the Hungarian Corporate Income Tax Act in July 2019.
IT systems are evolving rapidly: cloud-based solutions, artificial intelligence and automated processes are all making businesses, organizations, and communities more and more efficient. Compared to the 2 billion internet users in 2015, at the end of 2017 there were approximately 3.8 billion internet users worldwide. It is estimated that by 2022 there will be 6 billion internet users (75% of the population that will grow to 8 billion by then) and by 2030 they will reach 7.5 billion (90% of the projected 8.5 billion population). This increase of usage of IT technologies, and the ever growing number of internet users naturally mean more cyber-attacks and hacking activity, that come with a price: much more attention than usual has to be paid to IT security.
The Central Bank of Hungary (MNB) has announced a new program, for the purpose of providing capital requirement benefits to those credit institutions based in Hungary that offer so called green loans for energy efficient housing goals (purchase, building or refurbishment) between 1 January 2020 and 31 December 2023. During this time period, these credit institutions will receive capital requirement benefits (5 to 7% depending on the energy efficiency of the related property) after the provided green loans, and the customers taking out these loans are eligible for lower, discounted rates.
The National Tax and Customs Administration (“Authority”) has presented its vision for the future at a taxation conference held at the end of November 2019. The Authority has outlined that the emphasis will continuously be on the tax inspection of companies alongside with seizing the benefits of digitalisation and development. The principal objective of the Authority is to promote and enforce compliance with legal obligations. This objective will be supported by a new obligation (applicable as of July 2020) that requires taxpayers to provide complete data on their invoices.
A new amendment package was approved in the middle of December 2019. The package includes many novelties affecting the validity and issuance of driver’s licenses, the documents of newborns, document modifications due to marriage, procedures related to death and identity checks conducted by the police.
Affiliated enterprises have to report their related undertakings in a Country-by-Country (furthermore “CbC”) report until 31 December 2019 for the financial year of 2018. The information therein is used for high level transfer pricing examination and risk assessment. If a company fails to comply with the deadline mentioned above, it may expect a default penalty up to HUF 20 million (~ EUR 60,420) from the Hungarian Tax Authority.