A regulation effective from 1 July tightens up the operation of virtual offices in Hungary. New rules may make some of them to close down their businesses. A virtual office provides communication and address services for a fee, without providing dedicated office space. This is a convenient solution for businesses without presence, working from home […]
Category Archives: Cikkek
Taxation changes in 2017
As year end is coming so develop next year tax guidelines. Recently the government put through a bill in the Parlianemt about some major changes in taxation. Let’s see what are the most important changes in taxation for 2017. KATA (fixed-rate tax of low tax-bracket enterprises) Small taxpayers with smaller turnover favor this taxation […]
2016 changes in administration
As the new year begun we summarize what taxation changes took place from 1 January. Minimum wages According to the latest government decisions the minimum monthly salary for 2016 will increase to HUF 111.000, for higher educated employees will increase to HUF 129.000. First payment will become due after January salaries. VAT: new date of supply […]
Licensed activities
Amongst companies it is known that there are several activities, which require preliminary license or registration. Anyway up till nowadays we didn’t have a comprehensive listing for what kind of activities is it needed to apply for license. On website http://engedelykoteles.mkik.hu/ it can be easily checked for any kind of activity if it is registration / license […]
Phone cost and private usage
As a company owner or manager it’s worth knowing that telephone services will imply significant extra costs if you don’t pay attention. The law by default assumes there was private usage, and this does prohibit deducting the VAT of the expense. For this reason the VAT act applies the 70% rule on deductibility: meaning that 30% of […]
AccountingBudapest: Hungarian VAT essentials
AccountingBudapest has published Hungarian VAT essentials guide. Basic information The value added tax is called „Általános forgalmi adó” or simply „Áfa” in Hungarian. Hungary is a member state of the European Union. Non-Hungarian entities are required to register for Hungarian VAT if they perform business transactions in Hungary. The main source of Hungarian VAT regulations […]
Double Tax Avoidance Agreements in 2015, Hungary
Double tax avoidance agreements settle the taxation related rights between two countries in relation to income and wealth. The object of these agreements is to avoid having taxpayers’ income taxed double. However the agreements allow in several cases for both countries to levy tax on given incomes. If there exists double taxation avoidance agreement between certain countries, […]
Tax changes in Hungary 2015
On 18 November the Parliament has passed the bill on tax law changes for 2015 in Hungary. Let’s see what important changes shall we expect. Cafeteria The tax changes in cafeteria regulations affect most of the people. The originally planned amendments were significantly cut back. The benefits will be taxed unchanged, still by 35.7 percent […]
Invoicing rules in Hungary
Issuing invoices in Hungary is strictly regulated by ChapterX of the VAT Act CXVII of 2007. If you sell any products or services, you will obliged to issue an invoice. This cannot be done in simply in Word or Excel, but strict complience is required to the rules set out in the law. Information that is requested to be […]
Hungary: rules of accounting
Legal requirements Rules relating to the reporting and bookkeeping obligations of business organisations In Hungary, the accountancy requirements and the auditing activities are regulated by the Accountancy Act based on the accounting principles of the EU. The Accountancy Act defines the reporting and bookkeeping obligations that come under its scope, the principles to be followed […]