• Service: Tax, Global Indirect Tax, Global Mobility Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 10/30/2013

Hungary - Year-end tax proposals presented to Parliament 

October 30: Hungary’s Minister of the National Economy submitted to the Parliament the government’s year-end proposals for tax law changes. The tax proposals will be considered by the Parliament, and it is anticipated that final modifications could be accepted by mid-November 2013 following the conclusion of the parliamentary debate.

Tax proposals

Proposals that would affect corporations include:

  • Expansion of the favorable participation exemption rules to include 10% share acquisitions
  • Changes to the permanent establishment rules, to include non-residents that sell real estate in Hungary
  • Measures to allow taxpayers to consider direct costs of research and development (R&D) expenses for certain R&D activities conducted by related parties
  • Possible depreciation of assets based on market value

Other proposals would affect individual income tax, value added tax (VAT), excise tax, customs duty laws.

Read an October 2013 report [PDF 183 KB] prepared by the KPMG member firm in Hungary: Tax Changes 2014

During a press conference (30 October 2013), the Minister of National Economy addressed the main goals of the tax proposals. According to a summary of the press conference, the tax package contains some 300 sections, including:

  • Extension of the family tax allowance
  • Tax-exempt asset transfers between married spouses
  • Tax incentives for first-time home buyers
  • A corporate tax change to no longer require a self-revision when there is a “minor tax calculation error”
  • Deductible restaurant expenses (i.e., business-related food and beverage expenses) provided paid for with a bank card
  • Repeal of paper-based tax certificates for the vehicle registration tax
  • No change to the bank tax rate and conditions

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