Expected tax changes in 2017: IFRS - Cafeteria - family benefit

Impact on corporate tax when you prepare financial statement according to IFRS in 2017

If a Company decided to change local GAAP to IFRS or would like to do that in the future should be aware of new law in corporate tax for 2017. In most cases the profit before tax according to local GAAP is different from PBE according to IFRS but during the first 2 years of using IFRS the corporate tax and advance for corporate tax cannot be less than it was in previous year when Company used local GAAP. There could be exceptions but it should be proved and documented that the PBE according to local GAAP would be also same as PBE per IFRS.

Increase in family benefit (tax base benefit) from 2017

In case of one child the amount of family benefit would be 66.670 HUF per month in 2017.

In case of two children the amount of family benefit would be 100.000 HUF per month in 2017.

In case of two children the amount of family benefit would be 118.670 HUF per month in 2018.

In case of two children the amount of family benefit would be 118.670 HUF per month in 2019.

In case of three or more children the amount of family benefit would be 220.000 HUF per month.

New benefit for employees from 2017

Employer can give yearly 100.000 HUF cash-benefit to the employees with tax burden of 34,51%. This amount can not be extanded and not included in social security base.

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.