Tax laws are in a constant flux. While many people may find this intimidating for me it is exactly what makes it so exciting. I would like to share this attitude with business owners and managers, and with those who just have an interest in business related laws, in the form of a regularly updated blog that discusses the latest commercial law issues in an accessible style. Feel free to send your questions and suggestions for topics you would like me to cover.
In July 2022, the United States of America terminated the agreement with Hungary on the avoidance of double taxation, which has been applicable between the two countries for more than 30 years. The absence of the tax agreement after January
An establishment is an important concept in business because it determines things such as taxes and other applicable laws although it does not always and necessarily relate to retail companies. What is an establishment? An establishment is a business location
When a foreign enterprise is present in Hungary, and if it has created an establishment in the country based on the provisions of the Corporate Income Tax Act and/or the double taxation treaty between the country of residence of the
Currently, there are no regulations for EOR services in Hungary, while PEO services are regulated by the Labour Code and by a Government Decree on temporary employment and private recruitment agencies. According to the law, professional employer services are an
Government Decree no. 487/2020 regulating remote work during the period of pandemic emergency was amended on July 3, 2021. In summary Provisions of the Hungarian Labour Safety Act regarding remote work do not apply, e.g. no risk assessment regarding remote
Local business tax Local business tax has been reduced to 1% for small and mid sized businesses. When considering if your Hungarian entity meets the SME criteria for LBT reduction purposes, figures of all connected businesses must be totalled
As of January 1, 2021 the Act on Corporate Income Tax (CIT) contains an amended definition of whatconstitutes a permanent establishment (PE) in Hungary. According to the definition if a foreign business does not have registered presence in Hungary but
The Hungarian tax authority announced they would not impose penalties on foreign distance sellers for non-compliance with RTIR rules until 30 June 2021 if they register for the OSS (One-Stop Shop) scheme in any member state other than Hungary before
