• Service: Tax, Global Indirect Tax, Mergers & Acquisitions, Global Mobility Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 12/12/2013

Hungary - Summary of tax changes effective in 2014 

December 12: Tax law changes in Hungary that generally are effective in 2014 include the following corporate income tax provisions:
  • Expansion of favorable participation exemption rules in instances of 10% share acquisitions
  • Definition of permanent establishment also covers sale of real estate by non-resident person
  • Ability to consider direct costs of research and development (R&D) projects conducted by related parties
  • Concerning mergers, the surviving entity will be entitled to use certain losses of the merged entity
  • Extension of the deadline for using a tax allowance available to entities making “sports donations”
  • Debit or credit card receipts for restaurant services are sufficient for corporate income tax purposes
  • Book value of assets of real estate holding companies to be used for classification purposes

Other tax law provisions effective in 2014 affect value added tax (VAT) and excise tax provisions, and individual (personal) income tax.

Read a December 2013 report [PDF 240 KB] prepared by the KPMG member firm in Hungary: Tax changes 2014

©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

The KPMG logo and name are trademarks of KPMG International.

KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.

The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Direct comments, including requests for subscriptions, to
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.


Share this

Share this


Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)

Already a Subscriber? Login

Not a member? Subscribe now