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New Act on the Rules of Taxation is on the horizon in Hungary

New Act on the Rules of Taxation is on the horizon in Hungary

Hungary
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Several changes can be foreseen in the bill of the new Act on the Rules of Taxation that has recently been published by the Hungarian Ministry of National Economy.

According to the draft wording, the length of the audit proceeded by the national tax authority can no longer last over 365 days. However, the 180 day-deadline for the audit in case of an individual person or private entrepreneur remains unchanged.

Mentoring will be a new institution available for new enterprises, providing verbal or written assistance about their tax liabilities for up to six months after initiating the first contact.

For the purpose of reducing bureaucracy, several complex institutions are planned to be eliminated: the enhanced tax authority supervision, tax number suspension and the possibility to impose default penalty will also be reduced. 

A positive change is that according to the bill, the 200% penalty of the tax arrears in case of concealment of the revenues is planned to be reduced to 100%. Furthermore, if the taxpayer waives his right to appeal and pays the tax difference until the date of eligibility, he will be relieved from paying the 50% of the imposed tax penalty.

In the view of simplification, the proposed general rules of procedure has also been shortened.

By Eszter Kamocsay-Berta, 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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