Minister of Finance, Mihály Varga announced in November 2020 a new, six-point action plan designed to make payments and navigating red tape easier and cheaper in Hungary, as follows:
On September 22, 2020, CEE Legal Matters reported that DLK Legal in Poland and Kinstellar in Hungary and the Czech Republic, working together with Osborne Clarke as lead counsel, had advised Infosys on its EUR 30 million acquisition of GuideVision. CEEIHM spoke with Inderpreet Sawhney, Group General Counsel and Chief Compliance Officer at Infosys, to learn more about the deal.
“Right now, there is a bit of press around Hungary, for a variety of reasons,” says Kinstellar Partner Anthony O’Connor. “Some of that is related to the perceived tension between Hungary and the EU and the fact that the EU seems to be trying to tie certain expectations it has of Hungary to the funding it is due to receive.”
Debt collection is among the enforcement priorities of the Hungarian Data Protection and Freedom of Information Authority (“Hungarian DPA”) since several years a significant proportion of the Hungarian DPA decisions and court cases involving the judicial supervision of the Hungarian DPA’s decisions relate to debt collection and the handling of debtors’ complaints. In the past years, the Hungarian DPA blacklisted several practices by debt collection agencies, and the Hungarian DPA confirmed that relative to the debt collection it is illegal if debt collectors contact any third parties (i.e. the debtors’ neighbours), process the debtors’ close relatives’ personal data, process the debtors’ health related personal data (i.e. sickness or other medical condition) and any other sensitive information relative to the debtors’ whereabouts (i.e. whether the debtor is imprisoned or in pre-trial detention) or collect personal data beyond the purposes that are strictly necessary for debt collection.
SSW Pragmatic Solutions has advised the Cotta Group on its acquisition of seven production properties in southwest Poland, and has advised Cotta's sister company, Kanizsa Trend, on its acquisition of a production plant in Hungary, from Standard Properties. Germus & Tarsai, Wolf Theiss, and Clifford Chance reportedly advised the seller on the deal.
The Hungarian Competition Authority ("HCA") is one of the few competition enforcers in Europe with a prominent consumer protection enforcement practice. While consumer protection is not solely within the purview of the HCA in Hungary, the legal framework gives it relative freedom to pull any significant unfair practice that could affect competition under its jurisdiction. The HCA does not shy away from wielding its powers. In fact, some of the leading consumer protection fines in the EU are attributable to it.
In 2012 a simplified lump sum tax, known as KATA, was introduced for small businesses. The rules of KATA allowed small businesses, including private entrepreneurs, to opt to pay a lump sum monthly tax of HUF 50,000 (EUR 145) per person employed by the business. Businesses paying the lump sum tax are relieved of any other income or payroll taxes. The regime is applicable to income of up to HUF 12 million (approximately EUR 34,000) revenue per year. Above this limit, a tax rate of 40% is applied to the excess.
On August 3, 2020, CEE Legal Matters reported that Sorainen had advised Montonio on its generation of EUR 500,000 from both Estonian and international investors. CEEIHM spoke with Rasmus Oisma, Director at Montonio Finance, to learn more about the matter.
On 20 March 2015 the Hungarian Competition Authority ("HCA") imposed a staggering fine on Auchan for abusing its significant market power. The HUF 1.06bln (approx. EUR 3m) fine is the highest ever imposed by the authority for the infringement of the Trade Act (Act CLXIV of 2005 on Trade). Although the decision is from 2015, the Hungarian courts put an end to the judicial review only now. The Supreme Court of Hungary has upheld the HCA's decision in its entirety.