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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

Hungary Knowledge Partner

DLA Piper is a global law firm with lawyers located in more than 40 countries throughout the Americas, Europe, the Middle East, Africa, and Asia Pacific. This positions us to help clients with their legal needs around the world.

With more than 60 lawyers, including 14 partners, and a staff of over 140, DLA Piper Hungary is one of the largest international law firms operating in Hungary. What makes us stand out is that we offer not only legal services but also tax and business advisory support in a fully integrated manner. We maximize synergies between legal, tax, and business advisory services to offer a unique service for our clients, particularly in regulated industries such as energy, infrastructure, life sciences, banking, and telecommunications.

We are a true full-service firm, providing our private and public sector clients with advice on all aspects of their business. This includes transaction-related advice, people and employment, commercial dealings, litigation, information technology, media and communications, intellectual property, insurance, tax, real estate, and restructuring plans.

DLA Piper Hungary has received numerous professional awards and is consistently ranked among the top law firms in Hungary by international rankings. We are ranked #1 by Mergermarket among the law firms active in Hungary based on the volume of M&A deals handled between 2005 and 2024.

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