No drastic changes in tax rules

There are more than 230 sections in an Omnibus law that was adopted in the summer and which amends nearly two dozen tax-related acts. The experts of Mazars have analysed the changes for our magazine. From 2018 the tax rate for small companies is going to be 1 percentage point lower at 13 percent. In both the corporate tax and the so-called Robin Hood tax the costs of installing and operating charging stations for electric vehicles will be deductable from the tax base. However, pre-tax results will only be reducible in one tax type. One of the most important changes will occur in the domain of the VAT. The value limit for the so-called item-based data providing obligation will only decrease to HUF 100,000 from HUF 1 million from 1 July 2018, and not from 1 January 2018.

As for the rules of the tax procedure, they have become a bit stricter. For instance Hungarian companies based in Hungary will be obliged to provide the tax authorities with data on the bank accounts they have in another country. They must report such accounts that they already have to the National Tax and Customs Administration (NAV) before 31 January 2018. A tax payment collateral will also be introduced. It will become a general rule that NAV can only grant a diversion to tax payers from the general rules if they don’t have a net tax debt. In the future the data of tax payers who have missed to make three consecutive VAT reports will be made public on the NAV website. //