Corporate Income Tax- tax planning instead of tax calculation

The calculation of the annual taxes at the end of the business year is a regular task in the life of companies. Tax calculation is part of the financial closing process, so it also comes up during the audit. However, when the rush is on, it is often forgotten that the calculation of the corporate income tax can be more than a compulsory administrative task, i.e., merely the calculation of the tax due.

Although the 9% tax rate in force in Hungary is relatively low in international comparison, the amount of corporate income tax can be significantly reduced if the Company is aware of and uses the various options available for the reduction of its tax base rather than simply puts together its tax returns on the basis of the previous year’s routine. A carefully prepared tax calculation can achieve tax savings and addresses potential tax risks. On the other hand, a suboptimal tax return can lead to significant additional expenses in the long run. Not to mention the significant extra tax burden that many companies bear – in some cases unnecessarily – due to the rules of the expected tax, whereas their tax due could be significantly lower according to their actual tax base.

The biggest corporate income tax benefit can be achieved by recognizing tax allowances and tax base reduction options. Therefore, it is worth spending more time on planning your corporate income tax, reviewing the calculations prepared out of habit, and asking for help in the correct tax assessment of economic events that do not regularly occur. Forvis Mazars helps you to understand and take advantage of the potential of your current and planned operations.

To whom do we recommend our services?

for those whose corporate income tax calculation has not yet been reviewed by an external advisor;
for those who have numerous economic events not directly related to their normal operation;
for those who need an analysis on tax allowances and tax base reduction options;
for those who have questions regarding the assessment of certain special transactions.

How can we help?

As part of its tax consultancy service, Forvis Mazars provides support in reviewing corporate income tax calculations and preparing tax returns. We assist you in identifying risks and suggest the most effective ways to mitigate them. We help you to assess the benefits available to the company in corporate income taxation.

Our corporate income tax consultancy service includes the following tasks:

reviewing tax calculations, assessing relevant risks, risk management advising;
analysis and consultancy related to tax allowances and tax base reduction options;
tax consultancy on the tax impact of certain economic events;
tax planning related to complex transactions and transformations;
preparing tax returns if requested.