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Corporate Taxpayer Groups Can Be Established from 1 November 2019 in Hungary

Corporate Taxpayer Groups Can Be Established from 1 November 2019 in Hungary

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The provisions of the corporate taxpayer group is applicable from 1 January 2019, and despite the short preparatory period, more than 200 company groups have so far taken advantage of this opportunity in 2019. This possibility will be open again from 1 November to 20 November 2019.

The corporate taxpayer groups provide certain tax benefits. One of the most important advantages is that the losses of group members will become usable within the group: the tax base (i.e. the amount of the positive tax bases of the group members) may be reduced by the amount of the loss carried forward from negative tax bases of the group members up to 50% of the current year profit, which represents a potential tax saving opportunity. Furthermore, transfer pricing rules are generally not applicable to the group members’ internal transactions, the related transfer pricing documentation is not required, and individual tax allowances can be utilized at the group level.

By Eszter Kamocsay-Berta, Founding and 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.

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