Corporate income tax, local business tax

In 2015 the concept of affiliated companies has changed. Related companies are also those companies, where the same person(s) as managing director(s) makes the decisions.

From 2015 the total revenue cannot be decreased with the cost of goods sold and the cost of services sold (mediated) when determining the tax base according to the income (profit) minimum procedure. The way of calculation with cost of goods sold and cost of services sold (mediated) also changes in local business tax. Before 2015, if a company had affiliated companies at least for one day, the aggregation rules had to be adopted for the total revenue, cost of goods sold and cost of services sold (mediated), but from 2015 the aggregation rules only had to be adopted for that period when the companies were affiliated companies.
The deadline of use of tax loss carried forward amends to a 5 years limited period instead of unlimited. The loss carried forward existing on 31.12.2014 can be used up to 31.12.2025.
In annex 3, part A) the regulations of handling advertising costs has been amended. Before 2015 cost of advertising did not constitute a recognized cost without a proper statement of recognized advertising taxpayer, from this year this tax base increasing liability is only applicable for the advertising cost booked without proper statement when it exceeds an annual HUF 30 million limit.
From 01.01.2015 the Hungarian Tax Authority publishes on its web-page the register of advertising taxpayers.
The system of fringe benefits also changes from 2015. The favorable taxed annual limit decreases from THUF 500 to THUF 450 and over THUF 200 fringe benefit can only be allocated in form of “SZÉP card” with favorable taxation.

Value added tax

From 01.01.2015 the government introduced the Electronic Public Road Trade Control System (EKAER), with two monthes probation period and then with normal operation.
For legalizing economy, the range of products taxed by 5 % rate includes the sale of certain large animals.
The reverse charge mechanism had to be adopted for some more products (listed in a new Annex 6/B) and for the personal leasing services even if the given service does not requires license from the building authority.
The value limit of itemized summary report decreases from HUF 2 M limit to HUF 1 million, the rules of indicating customer’s tax ID on the invoice changes accordingly.
The rules of the continuous transactions change in two steps, first for the accounting, auditing, tax advisory services it has to be applied from 01.07.2015, for other kind of continuous services the regulations came in force only from next year.
Newly established companies have to file VAT returns on a monthly basis in the year of establishment and in the following year.