Tax-efficient forms of remuneration, serving at the same time, as a means of motivating management have never been more popular. And the range of options available for doing this has expanded this summer to include what’s known as a Special Employee Co-Ownership Program (“KMRP” in Hungarian), a vehicle that can be used for in certain situations that cannot be handled in the context of an Employee Part-ownership Program, MRP. In addition, KMRPs are an excellent vehicle for implementing management buyouts. 

Recently, the tax authority’s audit practices have changed appreciably. While until recently, tax audits were mostly launched as fully standalone procedures, today the tax authority (NAV) is increasingly initiating criminal proceedings alongside its tax audits. This is particularly the case in bogus-invoice deals affecting VAT, as well as in excise-duty and certain customs matters. But what’s behind this?

Implementing private property investments using company assets is slowly becoming a national sport. While the approach seems tempting, it carries a lot of risk. And the tax authority, NAV, has this type of arrangement firmly in its sights.

The most common form of corporate financing among owners is still the member’s loan. But many forget that while granting a member’s loan is relatively easy, it hides several ticking time bombs – as a recent Supreme Court decision confirmed. Fortunately, there’s already a risk-free capital contribution option. 

There are many factors to be considered when determining the value of a property. Among many other things, features such as the view from the property or the natural light that enters the interior cannot be left out of account. It’s clear, then, that the sunset at Lake Balaton from our window adds a lot to the property, but it’s often unclear what we need to focus on before and during the building stage if we’re to avoid attracting the ire of our neighbours later on.

Since 2014, the “new” Civil Code has allowed companies to deviate from statutory rules in terms of their operation and organization. Up until now, however, it wasn’t clear what was included and what wasn’t: what they could actually deviate from and what they had to adhere to. A new amendment expected to enter into force in January next year will clear the rules up while also easing them off at the same time, thus increasing Hungary’s competitiveness in terms of company law as well.

For years now, opportunities to reclaim VAT on bad debts have come up again and again. Although many had thought they had definitely missed the boat on this one, taxpayers have just been given one last chance.

For many, the summer months bring to mind sunny beaches, mouth-watering Mediterranean cuisine, colourful buildings along Portuguese streets, and cities that offer memorable cultural experiences... Yet few are aware that, beyond drawing in tourists, because of their tax systems, popular holiday resorts are also attractive destinations for affluent, well-to-do foreigners - often for periods of time longer than that of a mere summer adventure.