Tax Newsletters 2024
You can read here the latest tax newsletters of the Hungarian office of Forvis 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, Forvis 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 needs to keep in mind – even when the holidays are just around the corner.
End-of-Year Tax Changes: What to expect from 2025?
On 28 November 2024, Act LV of 2024 on the amendment of various tax laws (hereinafter referred to as the "Amendment Act") which constitutes the autumn tax package, was promulgated. While some provisions will already enter into force in 2024, other rules will only apply from 2025. This newsletter summarizes the most important changes.
Attention: Important deadline! Choosing to enter into corporate income tax groups until 20 November
20 November 2024 is the deadline until which company groups may submit their application to the Tax Authority for establishing a corporate income tax group for the 2025 business year, or in the case of an existing group, to dissolve a corporate income tax group it. Applications to join an existing group can be made also until that date. Companies that miss the above deadline will have to wait a whole business year for another opportunity.
The deadline for submitting refund applications for VAT paid abroad is approaching
Domestic tax subjects entitled to deduct VAT have an opportunity until 30 September 2024 to claim VAT refunds on the basis of invoices in 2023 with respect to purchases made in other member states of the European Union, and outside the European Union. After this peremptory deadline, the right to the refund is forfeited!
What tax changes has the summer of 2024 brought?
During this summer, several tax changes affecting different types of taxes and certain tax procedural rules were introduced. In this newsletter, we summarize the mid-year changes published in the Hungarian Gazette on 8 July 2024, which came into effect mostly in August.
From Green to Red: Tax changes related to Plug-in Hybrid cars
According to Government Decree 221/2024 (VII.31.) announced on 31 July 2024, plug-in hybrid vehicles will permanently lose their green registration plates by 30 November 2026. However, changes affecting vehicles classified in categories 5P and 5N will come into effect on 1 September 2024. In connection with this change, tax regulations for plug-in hybrid cars may also change from September.
Where will NTA knock next?
At the beginning of every year, the National Tax and Customs Administration (NTA) publishes its audit plan concerning the main directions and principles of the tax audits for the given year. By summarizing the main objectives of this year’s audit plan published in March 2024, our newsletter aims to raise the attention of tax payers specifically affected by the planned audits or operating in high-risk areas, so that a possible investigation during the year would not be unexpected.
New developments and issues in relation to the entry and stay of third-country nationals
From the start of 2024, the previous Act on the general rules of immigration, (namely Act II of 2007 on the Entry and Stay of Third-Country Nationals/ „Harmtv.”) was replaced by Act XC of 2023. („Btátv.”). The new legislation has entered into force earlier than expected, catching immigration professionals, many employers, and individuals, even the National Directorate-General for Aliens Policing unprepared. In the following newsletter, we aim to highlight some of the new rules and circumstances worth considering, that are advised to be carefully appraised before third-country nationals enter or extend their stay in Hungary.
In the focus: Changes in the rules of tax benefits related to energy efficiency
Since the onset of the energy crisis in 2022, companies have been paying special attention to the changes in their utility costs and are striving to contain these expenses. To remain competitive, they need to implement energy-efficient investments. Under the current rules, significant corporate income tax benefits may be obtained for investments made to achieve the companies’ energy efficiency goals. In this newsletter, we present the related main changes.