An increasing number of workers are employed by foreign employers in Hungary. In this regard, it is also worth drawing attention to the basic contractual rules, which otherwise apply to all businesses operating here.The employment...
Read full article...In 2022, the minimum wage rose again.Official minimum wages play an important role in Hungary. Although relatively few workers actually receive this wage, many other benefits are tied to the amount of the current minimum...
Read full article...In 2022, several minor, positive amendments were made to the companies section of the Civil Code. These also affect companies' additional capital payments. As an alternative to the member's loan, this equity element is primarily...
Read full article...Another significant tax cut took effect in Hungary from January 2022.Employers' wage costs continue to fall.The rate of social contribution tax is 13% instead of 15.5%.The 1.5% vocational training contribution paid by domestic companies has...
Read full article...There is a unique tradition in Hungary related to public holidays that is ususally strange for most of the foreigners. However, it must be adhered to by both employer and employees.If a public holiday falls...
Read full article...We are experiencing a growing interest in investment opportunities in Hungary. Many European and overseas companies are planning to set up, expand, or even relocate their operations to us.We present three interesting, important and recent...
Read full article...For three reasons, it is really worth using the possibilities provided by the Széchenyi Recreation Card now. The most popular benefit system is connected to a payment card with three sub-accounts: accommodation, catering and recreation....
Read full article...This is the third part of our series on the VAT registrations in Hungary.Hungary extends the OSS regime of the European Union to all the services and remote sales activities on 1 July 2021 . There...
Read full article...This is the second post about VAT registration in Hungary, discussing the issues of foreign companies.Why To Register To VAT?A foreign company might need local VAT registration for two reasons:Generating sales revenue with VAT payable:...
Read full article...This is the first of two posts about VAT registration in Hungary. This article highlights basic aspects of VAT registration of Hungarian companies.Registration of new companiesThe VAT registration is part of the incorporation process; it...
Read full article...The financial statements are often called annual reports in the business language. The accountants, however, prefer the name financial statements (FS). They include a lot of crucial information for the owners and the management, hence...
Read full article...As of April 1, the immediate, automatic transmission of invoices to the tax authorities is fully operational.Almost all the data of practically all issued invoices are automatically transmitted by the invoicing programs, thus we have...
Read full article...The lives of many companies are bitter with bad debts. In some cases, this can be fatal. And it is not enough that the legitimate income has never been received, but even the VAT on...
Read full article...BREAKING NEWS: The Hungarian government decided to lock down the country for two weeksThe third wave of the coronavirus pandemic is here with the new mutants, therefore new measures were announced today.All shops and services...
Read full article...Proper planning is a key of every successful business activity. While certain schemes are similar on various markets, labour costs and taxation are unique in most countries. We shortly introduce the current taxation of payroll...
Read full article...Sometimes running a new company becomes a nightmare due to the lack of a bank account. In the absence of a bank account, it is not possible to receive the income, it is not possible...
Read full article...A vital question for more and more companies: how to organise remote work (telework), what are the key regulations and consequences?What is remote work?We can talk about remote work or telework if the following 4...
Read full article...An agreement has been reached on new minimum wages, which could thus be valid from February.The new amount of the minimum wage for unskilled jobs will be HUF 167,400 gross, and the guaranteed minimum wage...
Read full article...The current pandemic has amplified the trend among international companies to employ different workers abroad as well: salespeople, developers, or even managers. This can be considered as a special form of remote work.How does it...
Read full article...There is no decision yet on the new minimum wages for 2021. The representatives of employers and labour unions did not reach an agreement about the raise of the wages. The new minimum wages are...
Read full article...Local business tax (LBT) can be halved for 2021 for all small and medium-sized enterprises (SME).A recent measure of the government related to the pandemic is about the LBT. LBT is a locally regulated tax,...
Read full article...The third phase of the online data transmission of sales invoices goes live on 1 January 2021.The National Tax and Customs Authority (NAV) implements what is called NAV 3.0 in a few days. The first...
Read full article...The first 30 days of the state of emergency will expire soon. Since we are not over the hardest period of the pandemic yet, the government extended the special regulations with another 30 days, until...
Read full article...Due to the increasing trend of Covid-19 infections, the Hungarian government declared extraordinary legal order from 4 November, and it was prolonged by the parliament for 90 days on 10 November. It this situation, the...
Read full article...Leinonen Hungary has a certified quality management system since 2014. This year it was time to renew our certificate for three more years. The audit took place in August, and was successfully completed with several...
Read full article...Due to the increasing trend and the highest ever daily new cases, new entering restrictions apply as from 1 September. The most important step is that all the borders will be closed to incoming traffic...
Read full article...We shortly describe the 3 most important changes in invoicing that come into force on 1 July 2020.All the invoices issued to customers with Hungrian tax number (B2B) must be immediately reported to the tax...
Read full article...The online data transmission of sales invoices debuted in July 2018, two years ago. In this first phase, the B2B invoices including HUF 100,000 or more VAT must be directly transmitted to the tax authority...
Read full article...The parliament and the government made the necessary decisions and the state of emergency was withdrawn as of today, 18 June.The various temporary regulations in taxation decided at the beginning of the emergency remain in...
Read full article...Social contribution tax is cut by 2% from 1 July.There is a long term agreement between the government and the employers about the reduction of the social contribution tax at certain conditions. This tax is...
Read full article...SZÉP Recreation Card is the most popular fringe benefit in Hungary. The amounts paid to this card can be used in domestic tourism, catering, recreation, cultural events and various sports activities. At the beginning of...
Read full article...Budapest and the whole country tries to return to the normal daily life and restart the suspended activities.From 18 May, most of the special measures were withdrawn. The movement restrictions are lifted, all the shops...
Read full article...Several restrictions have been lifted since 4 May in Hungary to gradually relaunch economy and social life.The public movement restrictions remained in force in Budapest and Pest county (around Budapest) only because there are the...
Read full article...Based on the reactions of companies and representative associations, the government significantly amended the decree about the subsidies of shortened work time.The reduction of work time can be 15 to 75 percent. It means that 8 hours per...
Read full article...Finance Minister Mr. Varga announced new government decisions related to the Covid-19 emergency.Together with the financial statements, the deadline to pay the yearly corporate income tax is also postponed to 30 September. Note: it is...
Read full article...The public movement restrictions announced on 27 March were extended for undefined period with weekly supervision. Most shops close at 3 pm and people can only leave their home for certain important reasons. Several public...
Read full article...The government decree about the subsidies of reduced work time was published a few days ago.The employer and the employee together can apply for the subsidy at National Labour Service with the following conditions: The employer...
Read full article...There are several points in the second economic aid package that have direct or indirect impact on the operation of the businesses. We highlight them one by one as far as they are known at...
Read full article...The government announced the second action plan summing up to 20 percent of the annual GDP today. It consists of the following points.Protection of jobs: in the case of part-time work, the government is ready to...
Read full article...Update: the movement restrictions are extended until further notice.The government issued a decree to restrict the movement in the whole country. It is not a total curfew but necessary to further reduce the direct contact...
Read full article...Here we share with you the original decrees of the Hungarian government about the economic measures realated to the current emergency.You can find the decree of the first economic aid package here.You can find the...
Read full article...In this post, we shortly describe the special regulations in force during the emergency due to the pandemic. The package published on 18 March made certain immediate and temporary amendments in the Hungarian Labour Code....
Read full article...The government decided to add six more points to the first economic aid package on 23 March. Beside the taxi drivers, another 81 thousand small private enterprises are vaiwed to pay the monthly fix KATA tax...
Read full article...There are no exact rules in the Hungarian Labour Code for the case of pandemic. First, we give you a summary about the most common questions and situation with a short explanation. Later, we will...
Read full article...The first financial package of immediate measures in response to the coronavirus crisis was announced on 18 March by the government of Hungary. The payback of all loans given to individuals and companies is suspended...
Read full article...Minimum wages are defined – raised – year by year, compensating the inflation and the average increase of salaries in the previous year. There are two kinds of minimum wages in Hungary: one for jobs...
Read full article...A new EU legislation on cross-border euro transactions came into force on 16 December, which will lower the cost of payments in Euro for consumers and businesses within EU but outside the Euro zone. ...
Read full article...Die einzige Konstante ist die Veränderung - insbesondere im Geschäftsumfeld. Wir listen hier 5 Punkte auf, die sich in naher Zukunft ändern werden. Es gibt noch viel mehr und wir werden Sie darüber auf dem...
Read full article...The only constant thing is change – especially in the business environment. We list here 5 points of change coming in the near future. There are much more, and we will keep you informed about...
Read full article...Employment costs will drop from next month, because the social contribution tax payable by employers on the gross salaries will be down to 17.5%. The total payroll costs of employers will be below 20% first...
Read full article...Massive GDP Growth & 2 Upgrades of Sovereign Debt Good news have been published in the recent weeks about Hungary. The most general indicator of the economy, GDP increased by 4.9% in 2018. It is...
Read full article...Big change in the employment rulesA major amendment of the Hungarian social insurance regulations apply as from 1 January 2019. Those employees, who receive pension due their age, are not subject to the public insurance...
Read full article...The minimum salary of both unskilled and skilled jobs increased by 8% on January 2019. The agreement was reached on the last day of the old year.The very minimum salary for unskilled jobs is gross...
Read full article...Our Partner, the Swedish Chamber of Commerce in Hungary organised a business lunch with guest speaker Mr. Zsolt Becsey. He is an expert of the European Union and has worked in several top positions during...
Read full article...The current value limit when a fixed asset can be expensed instantly is HUF 100,000, approx. EUR 300. Assets below this limit do not have to be depreciated over several years but can be simply...
Read full article...Leinonen Hungary Kft. received the audit report about the recent revision audit of its quality management system. Our quality management system is now again approved by ISO 9001:2015 standard with excellent result.
Read full article...The Hungarian economy's output increased by 4.8% in Q2 of 2018 compared to the same period of last year.Construction, trading and tourism were the strongest sectors, but all the others improved as well in this...
Read full article...A recent study of experts predicts that 97% of the jobs in the accounting sector will disappear in the next 20 years.We have two comments to this statement: This is not here yet. Your company...
Read full article...While the tax discount limits do not change next year, there will be some practical amendments in the use of the SZÉP cards, the most popular form of fringe benefits for the employees. Every card...
Read full article...On 1 July, the new online data transmission system of NAV (National Tax and Customs Administration) went live, and millions of invoices have been registered since then. There was a one-month trial period without penalties,...
Read full article...It is becoming a tradition to create and approve next year's central budget in summer, and not to leave it to the last days of the year. The plan continues the current trends of low...
Read full article...We are delighted to inform our clients and partners that Leinonen has expanded its coverage of Eastern European markets to include Belarus. Our Minsk office is brand new and fully owned by our parent entity...
Read full article...Every company handles, uses, processes personal data, even if in different scale. The new General Data Protection Regulation (GDPR) of the European Union applies to all companies working in the EU or dealing with personal...
Read full article...What is the current regulation?Every invoicing software - online or offline - has to be registered at the tax authority, and when a company starts using such a software, it has to inform the tax...
Read full article...The Hungarian bank accounts of the companies are automatically registered in the company database by the local banks. A new law prescribes to register the foreign bank accounts as well, until 31 January. This has...
Read full article...As from 1 July, the invoicing software should be directly connected to the tax authority (NAV).When we issue an invoice to another company (individuals are excluded), and the amount of the VAT is HUF 100,000...
Read full article...If you need further information about any of these current issues, just contact us or fill our contact form. You can also subscribe to our newsletter.20 December 2017Larger companies (yearly sales revenue over HUF 100...
Read full article...In May 2018 a new regulation will take effect: after four years of negotiation, the old regulations from 1995(!) will be replaced by a much more complex one. I think it is clear that in...
Read full article...There is a new requirement from OECD towards those multinational companies with yearly group revenue over EUR 750 million. It is called Country-by-Country Report, and it aims to discover the tax evasion practices of these...
Read full article...A returning question from our clients: how should they administer the prepayments made by their customers?If we receive payment from our customer before we deliver the goods or render the services, it is not a...
Read full article...We attended a conference last week about macroeconomic issues, organised by Joint Venture Association.The lecturers spoke about the current trends of growth and unemployment in Hungary, and they found that the era of growth through...
Read full article...3 years after the first audit in 2014, Leinonen Hungary renewed the certification of its management system according to the latest ISO 9001:2015 standard. The audit was successful, and we proudly present our new certification...
Read full article...Standard & Poorʼs Global Ratings revised the outlook on Hungaryʼs "BBB-/A-3" long and short-term foreign and local currency sovereign credit ratings from "stable" to "positive" on Friday.Hungary's rating has been below the "recommended for investment"...
Read full article...All the communication between authorities and companies will be online as from 1 January 2018. It applies to all companies registered in Hungary.In order to set up the system, every company has to register to...
Read full article...We attended a business lunch organised by JVA where Mr. Mihály Varga, Minister for National Economy held a speech and described the current economic trends and the background of certain government decisions.The attendees made several...
Read full article...The parliament adopted the tax law amendments for 2018. Here you can read some interesting points.The VAT on certain items drop in January: internet services, fish, some pork meat products, and restaurant services.As we reported...
Read full article...A few years ago the domestic bank transfer have been done overnight. The first big step forward was to make it within 4 hours during working time. The system now works on hourly basis: all...
Read full article...The current law prescribes that all the Hungarian banks have to inform the tax authorities (NAV) about all the bank accounts opened by their corporate clients. This enables NAV to collect the tax debts. However...
Read full article...The official proposal of tax laws for 2018 include various amendments, such asthe special tax of SMEs drops from 14% to 13%,the health contribution payable from property rental income of individuals (14%) is cancelled,the VAT...
Read full article...New target date: 1 July 2018The Ministry for National Economy announced that the planned online invoicing requirements will not be in force before July 2018. It will be available for testing from July 2017, but...
Read full article...Since March 2017, the registration of a new kft (Ltd) at the court is free of charge.It means that the founders can establish the new company by simply going to a lawyer, and signing the...
Read full article...We proudly announce that Leinonen Hungary joined the Joint Venture Association, a 30 years old local organisation of mainly international companies. We think that this membership will serve the mutual benefits of the Association and...
Read full article...Hungary is Nr. 7 on the list of the 13 best places to work regarding the balance of work and private life.A survey by InterNations, the world’s largest network for people who live and work...
Read full article...Press release 14.2.2017 Leinonen Group continues strong growth strategy and strengthens its position by acquisition of Norwegians Resultat Compagniet AS This acquisition strengthens the business of Leinonen Group in Norway and increases the clientele. With...
Read full article...The minimal amount of the registered capital (jegyzett tőke) of a limited liability company (kft) is HUF 3 million. There was a period of time several years ago when this limit was reduced to HUF...
Read full article...There are various benefits an employer can give to its employees beside the monthly salary. Most of them are charged with 43.66% of tax and contribution, however this is still less than the general taxation...
Read full article...There are several important deadlines regarding closing the previous business year and opening the new one.The first one in 31 January, when the employers should receive certain declarations from all the employees for the payroll...
Read full article...As from January 2017 there is change in the invoicing rules. Until now the seller's tax number must always have been on the invoices. But now also the buyer's tax number is a compulsory item...
Read full article...Currently there are two corporate tax rates in Hungary: 10% up to HUF 500 million EBT (EUR 1.6 million), and 19% above this limit. From 2017 there will be one general rate of 9%.It means...
Read full article...The minimum wage will increase by 15% (to cca. EUR 420), while the guaranteed minimum wage for qualified employees will increase by 25% (to cca. EUR 530) in 2017. At the same time, the social...
Read full article...The rules of invoicing and VAT returns will change in two steps in 2017. From 1 January the buyer's VAT number must be shown on every domestic sales invoice which include a VAT of HUF...
Read full article...With the membership at MINKE, we further strengthen the professional background, widen the sources of information, and improve the training possibilities for our colleagues. All this happens for the advantage of our Clients through increasing...
Read full article...Moody's Investors Service reviewed the ranking of Hungary as sovereign debtor on 4 November, and decided to upgrade it to the section "recommended for investment" with stable outlook.With this step, all the three major agencies...
Read full article...If a Hungarian citizen works abroad, the Hungarian health insurance must be informed within 15 days, and his insurance ID will be cancelled. Since he is insured abroad, he is entitled to use the health...
Read full article...Leinonen Hungary's partner, a returning supplier of the Hungarian energy sector, Doosan Škoda Power participated in the construction project of the new state-of-the-art power plant in Dunaújváros. The project was finished and handed over in...
Read full article...As from 1 January 2017, the scope of businesses obliged to use online cash registers connected to the tax authority is getting wider. This time, the following entrepreneurs are required to have such an equipment...
Read full article...It is pretty common that a new company is established with the minimum equity, but later on further fund is necessary to continue the business before it achieves the break-even point. But older companies also...
Read full article...There are special rules and regulations for those employees, who work in Hungary for a foreign employer. If the employer is not present in Hungary, he can choose to either register at the tax authorities...
Read full article...How do you describe the current business environment in the country? Are any new tax rate or legislation changes influencing it? If so, how? The business environment is getting better and better, the taxes are...
Read full article...Important deadlines for tax declarationsAnnual reports and simplified annual reports are to be disclosed until 1st of June 2015 if the business year is identical with the calendar year.The companies keeping double entry books may...
Read full article...Value Added Tax (VAT) - deduction rightUntil the end of last year VAT could be deducted anytime (in 5 years), but from 2016 taxpayers can deduct the VAT and decrease their payable VAT only in...
Read full article...Seminar Series consists of four events:Tuesday 1.4. Central European markets: Poland, Hungary, BulgariaTuesday 8.4. Scandinavian markets: Sweden, NorwayTuesday 15.4. Baltic markets: Estonia, Latvia, LithuaniaTuesday 29.4. Russian Markets: Russia, UkraineThe seminar series was done in cooperation with: In each event, gift cards (trip to Tallinn, Estonia) were awarded...
Read full article...The transaction tax will increase from 0.2% to 0.3%, but the maximum transaction tax amount will remain 6.000 HUF per transaction. The transaction duty on cash payments will be raised to 0.6% from 0.3% and...
Read full article...The previous legislation entirely prohibited the VAT deduction of these services. Furthermore, VAT will be entirely deductible in the case when the service is at least 50 percent further invoiced, however, it is not clear...
Read full article...According to the regulations by The Ministry of Public Administration and Justice, all registered Hungarian limited liability companies are required to modify their articles of association. The changes are government's efforts to delete non-active companies...
Read full article...Pension contributions must be paid from all the salary payments throughout the year. The pension ceiling (7 942 200 HUF) will be removed.
Read full article...The tax base will remain the same (benefit amount * 1, 19) and tax is 16 %. However, health contributions will increase from 10% to 14 %.It will be totally tax free for an employer...
Read full article...Latest articles
2
Apr
21
Sep
26
Jan
We will send you articles keeping you up to date with the latest trends and developments in accounting, taxation or legal fields.
