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...
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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...
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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...
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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...
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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...
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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.
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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...
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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...
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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...
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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,...
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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...
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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...
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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...
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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...
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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...
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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...
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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...
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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...
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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...
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A returning question from our clients: how should they administer the prepayments of their customers?If we receive payment from our customer before we deliver the goods or services, it is not a revenue of the...
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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...
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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...
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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"...
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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...
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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...
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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...
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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...
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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...
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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...
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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...
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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...
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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...
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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...
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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...
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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...
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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...
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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...
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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...
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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...
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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...
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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...
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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...
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As mentioned in our post in October, 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...
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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...
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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...
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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...
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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...
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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...
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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...
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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...
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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...
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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...
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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...
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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...
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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...
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Pension contributions must be paid from all the salary payments throughout the year. The pension ceiling (7 942 200 HUF) will be removed.
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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...
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