22
Mon, Apr
44 New Articles

Preparation of an Anti-Tax Evasion System in Hungary

Preparation of an Anti-Tax Evasion System in Hungary

Hungary
Tools
Typography
  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

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

Nagy és Trócsányi was founded in 1991, turned into limited professional partnership (in Hungarian: ügyvédi iroda) in 1992, with the aim of offering sophisticated legal services. The firm continues to seek excellence in a comprehensive and modern practice, which spans international commercial and business law. 

The firm’s lawyers provide clients with advice and representation in an active, thoughtful and ethical manner, with a real understanding of clients‘ business needs and the markets in which they operate.

The firm is one of the largest home-grown independent law firms in Hungary. Currently Nagy és Trócsányi has 26 lawyers out of which there are 8 active partners. All partners are equity partners.

Nagy és Trócsányi is a legal entity and registered with the Budapest Bar Association. All lawyers of the Budapest office are either members of, or registered as clerks with, the Budapest Bar Association. Several of the firm’s lawyers are admitted attorneys or registered as legal consultants in New York.

The firm advises a broad range of clients, including numerous multinational corporations. 

Our activity focuses on the following practice areas: M&A, company law, litigation and dispute resolution, real estate law, banking and finance, project financing, insolvency and restructuring, venture capital investment, taxation, competition, utilities, energy, media and telecommunication.

Nagy és Trócsányi is the exclusive member firm in Hungary for Lex Mundi – the world’s leading network of independent law firms with in-depth experience in 100+countries worldwide.

The firm advises a broad range of clients, including numerous multinational corporations. Among our key clients are: OTP Bank, Sberbank, Erste Bank, Scania, KS ORKA, Mannvit, DAF Trucks, Booking.com, Museum of Fine Arts of Budapest, Hungarian Post Pte Ltd, Hiventures, Strabag, CPI Hungary, Givaudan, Marks & Spencer, CBA.

Firm's website.

Our Latest Issue