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Raise share capital

15 March 2017: deadline to raise share capital to HUF 3 million

Attention: KFT owners Hungarian limited liability company owners shall pay attention to obligatory share capital increase.  According to a 2-years-ago passed bill KFT minimum share capital was set to HUF 3,000,000 from the former HUF 500,000. Accordingly since 15 March 2014 newly established KFTs need to have minimum HUF 3 million share capital. Nevertheless owners of […]

Local tax, local business tax

Besides corporate tax there is also another profit based tax in Hungary, the so called local tax. Town municipalities levy and collect local taxes as to contribute to municipality liabilities. While in opposition: corporate tax is collected by central government. There are four main classes of local taxes: local business tax; property tax; tourism tax; […]

Taxation changes in 2017

Taxation changes in 2017

As year and is coming so develop next year tax guidelines. Recently the government put through a bill in the Parlianemt about some major changes in taxation. Let’s see what are the most important changes in taxation for 2017.   Corporate tax According to latest Government announcement corporate tax rate is expected to be reduced […]

Business phone

Business phone and private usage

As a company owner or manager it’s worth knowing that telephone services will imply significant extra costs if you don’t pay attention. The law by default assumes there was private usage, and this does prohibit deducting the VAT of the expense. For this reason the VAT act applies the 70% rule on deductibility: meaning that 30% of […]

VAT in Hungary

Hungarian VAT essentials

  Basic information The value added tax is called „Általános forgalmi adó” or simply „Áfa” in Hungarian. Hungary is a member state of the European Union. Non-Hungarian entities are required to register for Hungarian VAT if they perform business transactions in Hungary. The main source of Hungarian VAT regulations is Act CXXVII of 2007 on […]

Branch offices

Branch offices and commercial representative offices of foreign business associations in Hungary

In this article you will learn about two special business organisations that are available in Hungary for foreing companies to carry out business activity. These business organisations differ from the common forms of companies, however may easily be suitable for several foreign enterprises.   1. Branch offices Foreign entrepreneurs may conduct their business in Hungary by opening […]

Budapest, Hungary

Doing Business in Hungary 2016

For particular tax, accounting and audit questions please contact us. The objective of Doing Business in Hungary 2016 is to provide guidance on the business environment in Hungary for those decision-makers who are interested in engaging in business activity in Hungary. The publication focuses on the general overview, like currency, climate, cost of living, bankink, and […]