Transfer Pricing 2018

New transfer pricing regulation (Decree No. 32/2017 (X. 18.) of the Minister for National Economy on the documentation requirement related to the determination of the arm’s-length price (“the Decree”)) was promulgated on 18 October 2017.

New online invoice data reporting requirements in 2018

 As of 1 July 2018 invoices that are issued with an invoicing software and have a VAT content of at least HUF 100,000 must be reported by means of online data provision to the tax authority. The new regulation will enable the tax authority to directly monitor the operation of invoicing software used by taxpayers, furthermore it will ensure direct data analysis as well.

VIP cash grant for technology-intensive investments

Further favourable changes have been introduced – based on our clients’ feedback- in the non-refundable VIP Cash Grant system with the purpose of supporting technology-intensive investments. The amendment came into force on the 21 November 2017.

The above mentioned incentive (Government Decree No. 210/2014 (VIII. 27.)) is provided by the Hungarian Government from 1 January 2017, with the assistance of the Hungarian Investment Promotion Agency (HIPA).

Payroll giving you a headache?

Outsource Payroll with Confidence


Now is a good time to focus on how your business pays employees. Payroll reporting doesn’t have to be a laborious process. Consider using an outside company to manage your payroll function. Here’s why payroll outsourcing may be beneficial and how a service audit can provide assurance about your payroll provider’s internal controls.

3 Financial Statements Important for You to Know

Successful business people have a solid understanding of the three financial statements prepared under Hungarian Accounting Law (HAL). A complete set of financial statements helps stakeholders — including managers, investors and lenders — evaluate a company’s financial condition and results. Here’s an overview of each report.

April 2017

How Do Agreed Upon Procedures Differ from an Audit?

An agreed upon procedures (AUP) engagement uses procedures similar to an audit, but on a smaller and limited scale. Here’s how a customized AUP engagement differs from an audit and can be used to identify specific problems that require immediate action.

Being a director – What is my operational role?

We are often asked about the operational responsibilities of directors. There is a large degree of subjectivity associated with the answer, and therefore no short, definitive answer that applies to all. The importance of getting it right, however, cannot be overestimated. Ask any executive about the frustrations and inefficiencies of a director getting it wrong towards the heavy end; and then ask any shareholder about the disappointments in a well-paid director being on the barely asleep side of involvement.  So how do some get it right, and what constitutes “right”?

Hungary eases and clerifies local rules on Transfer Pricing documentations

Hungary has introduced mandatory transfer pricing documentation for intercompany transactions already in 2005. Since than there has been a lot of facilitations and practical clerifications in local transfer pricing legislation. Nevertheless transfer pricing is still in the focus of the Hungarian Tax Authority and taxpayers may expect heavy sanctions if the transfer pricing documentation has not been prepared (6.500 EUR penalty per missing transfer pricing documentation) or it is not appropriate.

Profit and Cash Flow: What's the Difference?

We often hear from business owners who report a healthy profit at year end, but scramble to pay their bills on time throughout the year. This scenario is especially common for start-ups and companies that work on long-term projects. These types of businesses tend to have a long cash conversion cycle that causes a significant disconnect between cash in the bank and the profit reported on income statements and tax returns. Here’s why.

New Public Procurement Act in Hungary

A new public procurement act was passed by the Hungarian parliament late September 2015 which serves alignment with the latest set of European directives adopted last year. The new regulation that is set to switch to operational from 1 November this year wield a massive impact on construction procurements.

Transfer Pricing control in Hungary

Aim of the transfer pricing documentation is to determine whether the transfer prices of intercompany transactions (controlled transactions) are similar to those of comparable transactions between independent parties under comparable circumstances (uncontrolled transactions). Possible price differences indicate adjustment of the company’s corporation income tax base.

Transfer pricing investigations

Nowadays the Hungarian Tax Authority places more emphasize on the review of controlled intercompany transactions. As they are getting more educated and experiences on this field, they pay more and more attention on the content of documentations.
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