New tax package submitted to Parliament
This autumn’s tax package was submitted to the Parliament last week, registered under T/12741, containing amendments in all the relevant tax rules in Hungary.
Here are some of the most remarkable changes:
In case of the Fixed-Rate Tax of Low Tax-Bracket Enterprises (in Hungarian: KATA) the HUF 6 million income threshold will be increased to HUF 12 million and in line with this individual VAT exemption will also be increased from HUF 6 million to HUF 8 million.
The amendment of the Act on Duties specifies the application of duty allowances on the acquisitions of real estates by real estate agencies and lease companies.
The newest amendments of the Act on the Rules of Taxation aim the realization of a service-orientated tax authority. For this it establishes the possibility of self-revision not only for natural persons but for economic operators, too. According to the bill, the judicial procedure will be the only legal remedy in case of transfer pricing decisions in the future.
Furthermore, by the implementation of an EU directive a data exchange mechanism will be integrated on advance cross-border rulings and on transfer pricing decisions amongst the member states and the EU Commission.
One of the most awaited provisions is the prolongation of the entry into force of the new excise legislation, which was adopted this summer, from January 1, 2017 to April 1, 2017. By this measure the Governments intends to provide more time for the customs authorities and economic operators to prepare for the new administrative and taxation procedure.
By the end of this month the bill will have been discussed in the relevant parliamentary committees and the general and detailed debates will have been completed since the deadline for the promulgation of the new tax rules is November 30.
It is well worth seeing these new rules and starting the preparation for New Year’s changes. For this our legal experts, auditors, tax advisers and accountants at ECOVIS HUNGARY are kindly at your service.