{"id":1902,"date":"2023-01-30T15:19:46","date_gmt":"2023-01-30T15:19:46","guid":{"rendered":"http:\/\/gerey.hu\/EU\/?p=1902"},"modified":"2023-02-09T10:42:09","modified_gmt":"2023-02-09T10:42:09","slug":"summary-of-amendments-of-tax-legislation-of-the-year-2023","status":"publish","type":"post","link":"http:\/\/gerey.hu\/EU\/summary-of-amendments-of-tax-legislation-of-the-year-2023\/","title":{"rendered":"SUMMARY OF AMENDMENTS OF TAX LEGISLATION OF THE YEAR 2023"},"content":{"rendered":"\n<ul class=\"wp-block-list\"><li><strong>CHANGES CONCERNING HUNGARIAN EMPLOYEES<\/strong><\/li><\/ul>\n\n\n\n<p style=\"text-align:justify\">As of January 1st 2023, the minimum basic salary of full-time employees has been increased to HUF 232,000. In accordance with this, the minimum of the contribution payment has been increased to HUF 69,600. Based on these numbers, the social contribution has to be paid after HUF 69,600, at the lowest.<\/p>\n\n\n\n<p style=\"text-align:justify\">Another change, which came into force on the 1st of January is that if an employee is being employed at a place and by an employer that differs from the one written in her\/his employment agreement, or if she\/he is under secondment, the original employer determined in the employment agreement remains the official employer of the employee, even if the employee, based on the agreement of the parties, receives her\/his salary, and bonuses from the employer at the temporary workplace.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>VALUE ADDED TAX (VAT)<\/strong><\/li><\/ul>\n\n\n\n<ol class=\"wp-block-list\"><li>The amendment states that those properties that had their function converted shall be deemed new properties in addition to those that are already new properties by virtue of the law. Based on this, the sale of a converted property is not VAT free anymore, the seller is obliged to pay VAT after the sale in cases where the statutory certificate stating the conversion is not older than 2 years. Reduced VAT of 5% for the sale of brand-new property is in force until &nbsp;December 31st 2024 (in special circumstances until December 31st, 2028), after that the general 15% VAT shall apply.<\/li><li>In the case of installation and construction works the reverse charge of VAT will become applicable even if the conversion is subject to other form of statutory authorization other than construction permit and simple notification requirement.<\/li><\/ol>\n\n\n\n<ul class=\"wp-block-list\"><li>The requirements of data collection in regards of receipt data will now expand to the receipts issued by methods bound to the permit of the authorities and the technical methods that differ from using a cash register.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>The rules of reverse charge will remain in use until December 31st, 2026 regarding selected cereal products, the sale of steel industry products and the granting of the right to emit greenhouse gases (emission allowance).<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>TRANSFER OF PROPERTY BETWEEN RELATED UNDERTAKINGS<\/strong><\/li><\/ul>\n\n\n\n<p style=\"text-align:justify\">Based on the amendment, from\nnow on, only those transfers will be free of duty in which the acquiror\u2019s net income in the previous\ntax year derives from the leasing, operation, or sale of their own property at\nleast in a 50 % ratio.<\/p>\n\n\n\n<p style=\"text-align:justify\">We would like to emphasize that the legislation summarized above has\ndiffering dates for when they come into force.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>CORPORATE INCOME TAX<\/strong><\/li><\/ul>\n\n\n\n<p style=\"text-align:justify\">The amendment of\nthe accounting law (based on the 2021\/2101 directive of the European Parliament\nand of the Council) obliges specific companies to draw up, publish and make\naccessible a report as follows:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Ultimate parent undertakings and\nstandalone firms governed by their national laws, shall draw up, publish and\nmake accessible a report on income tax information if the consolidated revenue\non their balance sheet date exceeded for each of the last two consecutive\nfinancial years a total of EUR 750&nbsp;000&nbsp;000, as reflected in their\nconsolidated financial statements, as regards the latter of those two\nconsecutive financial years.<\/li><\/ol>\n\n\n\n<ul class=\"wp-block-list\"><li>Member States shall provide for an\nundertaking to no longer be subject to the reporting obligations set out where\nthe total revenue on its balance sheet date falls below EUR\n750&nbsp;000&nbsp;000 for each of the last two consecutive financial years as\nreflected in its financial statements.<\/li><\/ul>\n\n\n\n<p style=\"text-align:justify\">By definition an ultimate parent undertaking is the highest\nparent investment firm undertaking of the investment firm licensee or the holding\ncompany whose predominant investment are shares of the investment firm(s)\n(wherever established) that is not itself the subsidiary of another\nundertaking, while a standalone undertaking is an undertakingwhich\nis not part of any group.<\/p>\n\n\n\n<p style=\"text-align:center\"><em>*<\/em><\/p>\n\n\n\n<p style=\"text-align:center\"><strong><em>This summary is intended to\nraise awareness and does not constitute legal advice.<\/em><\/strong><\/p>\n\n\n\n<p style=\"text-align:center\"><strong><em>If you have any questions or\nneed further information, please do not hesitate to contact us.<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Based on the legislation adopted at the end of November 2022, in our newsletter we summarize the amendments made to the Hungarian tax laws. This summary only contains the major lines of the most significant amendments, due to the numerous detailed rules. The analysis of the details goes beyond the scope of this newsletter, however at your request we gladly give further information about their essential contents.<\/p>\n","protected":false},"author":1,"featured_media":1903,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-1902","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"_links":{"self":[{"href":"http:\/\/gerey.hu\/EU\/wp-json\/wp\/v2\/posts\/1902"}],"collection":[{"href":"http:\/\/gerey.hu\/EU\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/gerey.hu\/EU\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/gerey.hu\/EU\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/gerey.hu\/EU\/wp-json\/wp\/v2\/comments?post=1902"}],"version-history":[{"count":3,"href":"http:\/\/gerey.hu\/EU\/wp-json\/wp\/v2\/posts\/1902\/revisions"}],"predecessor-version":[{"id":1910,"href":"http:\/\/gerey.hu\/EU\/wp-json\/wp\/v2\/posts\/1902\/revisions\/1910"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/gerey.hu\/EU\/wp-json\/wp\/v2\/media\/1903"}],"wp:attachment":[{"href":"http:\/\/gerey.hu\/EU\/wp-json\/wp\/v2\/media?parent=1902"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/gerey.hu\/EU\/wp-json\/wp\/v2\/categories?post=1902"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/gerey.hu\/EU\/wp-json\/wp\/v2\/tags?post=1902"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}