Taxation of Real Estate Transactions In 2012
The provisions of the Stamp Duties Act applicable on real estate transactions have regularly and significantly changed recently. For the first time they changed significantly in 2010, when the...
View ArticleHungary Becoming a New Centre of International IP Investments
As a result of the latest amendments to the local tax laws Hungary will become one of the top IP-holding locations within the European Union. Beside the existing tax benefits relating to the...
View ArticleBusiness with Foreign Entities - Pay Attention Rather Than Penalty
As of 1 January 2012, special documentation requirements were introduced in Hungary with respect to transactions concluded between Hungarian taxpayers and companies established or operating in tax...
View ArticleCompany Sale: Limited Opportunities, Unlimited Liability
With the amendment of the Bankruptcy Act, from 1 March 2012 the legislator has significantly expanded the scope of such circumstances when the unlimited liability of the former shareholder of a company...
View ArticleThe Hungarian Holding Company Regime: It Offers Everything and A Little More
When the tax planning departments of multinational enterprises look for favourable locations for holding companies they mostly end up in using Dutch, Luxembourg, Cypriot and Maltese companies. Only few...
View ArticlePresumption of fictitious invoices introduced?
The audit of the authenticity of invoices has been one of the primary inspection targets for the National Tax and Customs Administration (NAV) during the last few years. Despite the numerous...
View ArticleFATCA - from Account Holders’ Point Of View
Upon the initiative of the Congress of the United States, as of 1 January 2014 a new banking information system will be introduced worldwide. The new system, the codename of which derives from the name...
View ArticleHungary vs Cyprus in International Structures
Early 2013 the Cypriot economy has undergone a shocking turmoil. While the immediate consequences of such distress are already visible (freezing of bank accounts, increase of corporate tax rate, etc.)...
View ArticleCan an Arm's-Length Principle Fall outside the Arm's-Length Range?
The Metropolitan Court passed a strange judgement in a recent case. According to the judgement, taxpayers cannot argue that they used arm’s-length price in their transaction with their...
View ArticleLong-Term Investment Accounts - Hole in the Net
The purpose of the personal income tax is to make Hungarian tax residents liable to tax on all their personal income irrespective of where the income is sourced and in which form it is realized. The...
View ArticleTime for Heroes or Villains? - New legislation brings rules for...
“Whistleblowing”, i.e. the reporting of misconduct occurring in an organisation, has a considerable history in the United States and the United Kingdom. The legislation of these...
View ArticleThe Majority Shareholder Falls Out of Control
The corporate law is based on the “majority principle”: the majority shareholder can control the decisions at the shareholders’ meeting. While the old Companies Act...
View ArticleThe Family Grows Bigger - the Definition of Related Parties Got Expanded
The recently adopted tax law changes significantly expand the definition of related parties.
View ArticleThe Hidden Treasure - Many Software Developers do not Exploit Their Tax Benefits
Software developer companies fall under a very favourable corporate income taxation in Hungary. Moreover, their income is local business tax exempt. Surprisingly, however, most of such companies are...
View ArticleEKAER Rebooted - Concessions for Multinationals
The Hungarian government just recently finalised the new rules for the controversial EKAER system. Most of the tweaked rules are applicable from 1 March and this also marks the end of the grace period...
View ArticleA Lease May Not Always be A Lease for VAT
Lease services often lead to uncertainty from a VAT perspective.
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