The Tax Foundation issued its annual International Tax Competitiveness Index (ITCI) of 38 OECD countries. The Index seeks to measure the extent to which a country’s tax system adheres to two important aspects of tax policy: competitiveness and neutrality. The ranking weighs variables across five categories: corporate taxes, individual taxes, consumption taxes, property taxes, and international tax rules.
A New Legislative Package Was Adopted to Reshape the Hungarian Energy Market
The Hungarian Government has adopted new decrees concerning household power plants and microgrids. These new legislations aim to enable economic operators to cooperate in fulfilling energy needs in times of high demand as well as to regulate small household power plants. The rules in question entered into force on 26 October 2022 and presumably will remain in force at least until the end of the state of emergency.
Real Estate-Related Tax Changes from 1 January 2023
In mid-October 2022, a new bill has been submitted to the Parliament on the amendment of certain tax provisions in relation to real estates. The bill, on the basis of changes in the building regulations, clarifies the definitions of the properties under construction and built-on new properties. Thus, a built-on new property means also a property for which an occupancy permit was already issued, but then, its use or the number of its units changed (e.g. it was converted from a flat to an office) and 2 years have not yet elapsed until its sale. These properties will be sold subject to VAT.
Did You Know: CEELM's Litigation/Dispute Resolution Briefings Leaderboard
Did You Know that, according to the Activity Rankings function of the CEELMDirect website, Schoenherr has published 18 articles of legal analysis on the subject of litigation/dispute resolution on CEE Legal Matters — the most of any firm — over the nine years of its existence?
Are NFTs Subject to VAT?
According to its latest ruling, the Spanish tax authority certainly considers so. However, the recent boom in the popularity of NFTs poses more questions than answers from the perspective of indirect taxes.
It All Boils Down to Energy in Hungary: A Buzz Interview with Rita Parkanyi of KCG Partners
The energy crisis has led to businesses shutting down for the winter and subsequent employment-related issues, with the Hungarian government now providing energy subsidies, according to KCG Partners Founding Partner Rita Parkanyi.
Curia’s Clarification on Working Time Records
According to the Hungarian Labor Code, employers shall keep records of the durations of regular working time and overtime, standby duty, periods of leave and overtime work performed. The working time records should be updated on a daily basis and should contain facilities to identify the time of commencement and end of any regular and overtime work and standby duty. Records of the durations of regular working time and overtime may be maintained in the form of verifying the work schedule made out in writing at the end of the month, updated on a daily basis. The Labor Code, however, does not address the question where the working time records should be physically stored.
Anti-corruption Authority to Be Set up in Hungary
The Hungarian Parliament passed a law at the beginning of October 2022 to set up a new anti-corruption authority called “Integrity Authority” as a part of a legislative package, that was aimed to reach a compromise with the EU regarding the withholding of funds.
Local Business Tax Can be Paid in Euros and US Dollars
According to a new government decree published in the Hungarian Gazette on 26 September 2022, taxpayers can pay their local business tax advance and local business tax from 1 January 2023 by transferring the amount in euro or US dollars. Taxpayers belonging to a special economic zone can pay the local business tax to the account opened for this purpose by the National Tax and Customs Authority.
Doubling the Days for Paternity Leave Expected Soon
Based on Directive 2019/1158 of the European Parliament and of the Council of 20 July 2019 on work-life balance for parents and carers and repealing Council Directive 2010/18/EU (“Work-Life Balance Directive”), as of 2 August 2022 all Member States shall apply rules to improve work-life balance for parents and carers. In particular, Member States must ensure for working fathers at least 10 working days of paternity leave around the time of birth of the child and the paternity leave should be compensated at least at the level of sick pay.
Central Bank of Hungary Updated its Green Recommendation
On 5 August 2022, the Central Bank of Hungary (MNB) announced an update to its supervisory recommendation for credit institutions and Hungarian branches of credit institutions on climate-related and environmental risks. The recipients have to identify, manage, monitor and disclose climate and environmental risks.
New Special Rules for the Domestic Employment of Third-country Nationals
On 18 August 2022, a government decree on special rules for the employment of third-country nationals in Hungary during the emergency was published. According to the new rules, the list of cases in which the government office is not involved in the consolidated application procedure as a special authority, has been extended. This means that starting from 19 August 2022, government offices do not participate in the consolidated application procedure if the third-country national is employed by the general contractor or its subcontractor as defined under Act VII of 2015 on the investment related to the maintenance of the capacity of the Paks Nuclear Power Plant and on the amendment of certain related acts, including employment through a temporary agency, too.
Additional Cases Require the Opinion of Design Council, Postponed Energy Requirements
On 16 August 2022, a government decree was published amending certain construction, heritage protection, property management and government administration rules.
Hungarian Motorways to be Operated by Private Companies
As a result of the concession procedure previously launched by the Hungarian Government, the Hungarian State handed over the operation and maintenance of 1,237 kilometers of motorway to five different private companies from 1 September 2022 for 35 years.
The Central Bank of Hungary Suspended the Placement of Shares of a Public Limited Company
On 22 July 2022, the Central Bank of Hungary (MNB) suspended the placement of shares of FuturAqua Nyrt. (Issuer) to be issued in the course of the share capital increase and imposed a supervisory fine of HUF 5 million (~ EUR 12,500).
Corporate Proceeding Changes from 1 August 2022
The main amendments to the decree of the Ministry of Justice on certain aspects of the company registration procedure and the register of companies entered into force on 1 August 2022, while certain provisions enter into force on 1 September 2022. The new rules became necessary to comply with Directive (EU) 2017/1132 of the European Parliament and of the Council.
US Terminates the Double Taxation Treaty with Hungary
On 8 July 2022, the U.S. Treasury Department announced the termination of the double taxation treaty with Hungary concluded in 1979. The termination is effective from 1 January 2024.
KATA Taxation Closed down in Hungary
On 12 July 2022, just one day after its proposal, the Hungarian Parliament accepted the new law that affects more than 430,000 KATA taxpayers in Hungary, most of whom will no longer be eligible for this tax regime starting from 1 September 2022.