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.