Tax Newsletters 2021
You can read here the latest tax newsletters of the Hungarian office of Mazars. We would like to inform our clients and partners about actual tax news and changes.
What to pay attention to before the end of the year?
Once again this year, Mazars has prepared its summary of the end-of-the-year tasks. Our current newsletter lists the taxation deadlines and decisions to be made that the financial management of companies need to keep in mind – even when the holidays are just around the corner.
The 'late' autumn tax package is in front of Parliament
Dr. Zsolt Semjén Deputy Prime Minister submitted several draft bills affecting tax laws to the Parliament on 23 November 2021. We summarized the most important points of the draft bills in our newsletter.
VAT refunds on irrecoverable debts - The deadline is expiring soon
The FGSZ case (C-507/2) reopened two new possibilities for recovering the VAT content of time-barred overdue bad debts (having a performance day which expired more than 5 years ago) for a limited period. As the European Court of Justice stated in its order - contrary to the previous practice of the Hungarian Tax Authority – the limitation period should not be calculated from the original date of performance, but from the date when the debt becomes permanently irrecoverable.
Brexit - status of British citizens in Hungary from 2022
Registration certificates and permanent residence cards previously issued without an expiry date to individuals who are UK citizens will be valid until the post-Brexit transition period, but not later than 31 December 2021. However, for a limited term, it is possible to apply for a national permanent residence permit for the individuals concerned under a favorable procedure.
Tax refund could be due to foreign expatriates, too
Foreign private individuals performing work in Hungary as expatriates may also retain the personal income tax (PIT) refund. As per our interpretation an expatriate could also be eligible for the personal income tax refund with regard to the tax paid in 2021 irrespective of his / her home country.
Register of ultimate beneficial owners "UBO" (ultimate beneficial owner)
The law regulating the central register of ultimate beneficial ownership’s information entered into force on 21 May 2021. The aim of the law is to make the ownership structure of the companies more transparent and the fight against money laundering more effective. In our newsletter, we summarised the main provisions concerning the UBO register and its anticipated impacts.
Attention: important deadline! Choosing to enter into corporate income tax groups until 20 November
Hungarian affiliated enterprises have had the opportunity to form corporate income tax groups for nearly three years, since 1 January 2019.
The extension of EKAER obligation to construction materials is prolonged until January
In line with the amendment of Government Decree 402/2021 (VII. 8), the July extension of EKAER obligation to construction products has been prolonged until January due to the ongoing COVID pandemic situation.
The Government Decree on the detailed rules of the personal income tax refund has been published
The rules on the personal income tax (hereinafter: PIT) refund for the families with children was published not as an Act, but as government decree. Based on the legislation the persons entitled to this tax relief will receive the refund of their PIT paid this year (or at least a part of it) at the beginning of next year.
The deadline for submitting refund applications for VAT paid abroad is approching
Domestic tax subjects entitled to deduct VAT have an opportunity until 30 September 2021 to claim VAT refunds on the basis of invoices in 2020 with respect to purchases made in other member states of the European Union. After this peremptory deadline, the right to the refund is forfeited!