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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


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

Established in 1957, Wolf Theiss is one of the leading European law firms in Central, Eastern and South-Eastern Europe with a focus on international business law. With 300 lawyers in 13 offices located in Albania, Austria, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania, Serbia, Slovakia, Slovenia and Ukraine, Wolf Theiss represents local and international industrial, trade and service companies, as well as banks and insurance companies. Combining law and business, Wolf Theiss develops comprehensive and constructive solutions on the basis of legal, fiscal and business know-how.

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