An important deadline is approaching for companies: the transfer price documentation must be prepared by May 31

By: Trademagazin Date: 2023. 03. 29. 11:53

In Hungary, roughly 15,000 to 20,000 companies are affected by the transfer pricing documentation obligation, i.e. the rules for recording transactions between affiliated companies.

The professional preparation of transfer price documentation and the horror of NAV audits have presented even the most experienced tax advisors with great challenges, but last summer’s tax package brought many new features. As of January 2023, the relevant taxpayers are required to establish the normal market price even before submitting the annual corporate tax return, as the information affecting the market price for connected transactions must be recorded in the return. With this, the transfer price documentation has moved from the category of “we put it in the account, if necessary, we take it out” to urgent tax consulting tasks, while the penalty items for omissions have increased several times – Tamás Kiss, director of the consulting business of Saldo Zrt., draws attention to the most important changes in the law.

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