Tax Consultation Services
Navigating the complexities of tax laws can be particularly challenging for those looking to maximize their wealth.
Our Specialized Services
Comprehensive Tax Consultation
Calculation and consultancy on personal income tax
Preparation and submission of tax returns upon request
Representation of clients before local authorities and/or during audits
Corporate Tax Information
General Information
The corporate tax rate is 9% of the positive tax base.
The tax base for both domestic and foreign companies is the pre-tax profit, which must be adjusted by the correction items specified in the Corporate Tax Act, such as carried-forward losses, provisions, tax depreciation, declared participation, intangible assets, dividends,
royalties, research and development expenses, non-business-related expenses, imposed penalties, thin capitalization, and accounting depreciation.
Companies engaged in business activities must submit their corporate tax returns by May 31 following the tax year. For companies operating on a different fiscal year, the deadline is the last day of the fifth month following the end of the fiscal year.
Domestic taxpayers are subject to corporate tax on income from both domestic and foreign sources (unlimited tax liability), while foreign taxpayers are only required to pay tax on income derived from their business activities in Hungary (limited tax liability).
Hungary offers tax incentives to support film production, spectator sports, and investments in business growth, energy efficiency, and financing for small and medium-sized enterprises (SMEs).
Minimum Profit Requirement
Even if a company is not profitable, it may still be required to pay corporate tax based on the minimum profit tax base. If the pre-tax profit or tax base does not meet the minimum profit threshold, the taxpayer must either declare its cost structure in the tax return or accept the minimum profit (which is 2% of the adjusted total revenue) as the tax base.
Personal Income Tax (PIT):
The tax obligation applies to the income of individuals residing in Hungary, as well as to the income earned by foreign individuals from Hungarian sources or income taxable under international treaties. Taxpayers can be individuals residing in Hungary (Hungarian citizens, excluding those with dual citizenship and no registered address in Hungary, citizens of the EU member states residing in Hungary for more than 183 days, and third-country nationals with permanent residence in Hungary). Non-resident individuals are also subject to taxation if they earn income in Hungary or if, according to international agreements, their income is taxable in Hungary.
Learn more about Tax issues
Real Estate Tax
Acquisition Duty
The acquisition of real estate or shares is subject to an acquisition duty based on the market value determined by the tax authority. The duty rate is 4% on the first HUF 1 billion per property, with 2% applied to the remaining amount. The maximum duty payable per property is capped at HUF 200 million.
Local Business Tax
The tax base for local business activities is the net revenue, which can be reduced by the cost of goods sold, intermediary services, subcontractor fees, material costs, and direct research and development costs. Read more …
Value-Added Tax (VAT)
In Hungary, the general VAT rate is 27%, in line with the EU VAT Directive. However, certain goods and services are subject to reduced rates (0%, 5%, and 18%).
VAT returns must be submitted monthly, quarterly, or annually. The submission deadline is the 20th day of the month following the relevant period.
Get Personalized Tax Consultation
Are you seeking expert advice on your personal income tax or need assistance with tax returns? Contact EuTrustZone Group today for a personalized consultation tailored to your unique needs. Our experienced consultants are here to help you navigate the complexities of the tax system.