Important deadlines for tax declarations
Annual 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 only deposit their financial statements electronically with the Company Information Service. The financial statements submitted through the government portal “Ügyfélkapu” are disclosed automatically, which means that enterprises can fulfil two obligations at the same time, those of depositing and disclosing of their financial statements. The financial statements deposited are available to everybody free of charge on the website of the Company Information Service.
In order to meet this obligation, an electronic form has to be submitted to the Company Information Service to which companies must attach the followings:
- accepted annual report or simplified annual report (Balance Sheet, Profit and Loss Statement, Notes),
- the resolution on the use of the profit after tax,
- certification of the payment of the HUF 3,000 disclosure fee and,
- in the case of enterprises having audit obligation, the independent auditor’s report also.
Financial statements may be filed with the Company Information Service “Ügyfélkapu” by the legal representative of the company or the person authorized by the company for this purpose. The person submitting the financial statements is liable for the data presented in the financial statements sent to the Company Information Service being identical with the data content of the accepted financial statements. For this reason, a hard copy of the financial statements must be kept for a period of 10 years from the date of acceptance.
Hungary plans to cut personal income tax in 2016
The published plan for 2016 is to decrease the personal income tax from the current 16% to 15%. Also the family tax benefit will be enlarged, however the child tax benefit can be used only if the child has own tax number. The long term plan is to decrease the personal income tax rate to one digit number. There are no plans to change the current flat rate to progressive taxation system.
No change in the corporate income tax in 2016
The government plans no change in the corporate tax rate in 2016. Only in the financial sector can be some changes in taxation in the next year. The government did not rule out a cut in the corporate tax later. The 2016 budget was calculated with an average EUR/HUF exchange rate of 308.
VAT will remain 27% in 2016
The general VAT percentage will remain 27%, only the VAT on pork is projected to be lowered to 5 percent.
Date of supply for transactions subject to periodic settlement
According to the new rules, the date of supply for transactions subject to periodic settlement will be the last day of the period to which the settlement or payment is related.
The amendment will take effect in two phases:
• in the case of accounting, audit and tax consulting services, the new rules must be applied first to periods starting after 30 June 2015, for which payment is also due after 30 June 2015;
• for other transactions subject to periodic settlement, the new rules must be first applied to periods starting after 31 December 2015, for which payment is also due after 31 December 2015.
Proposal for carrying forward the losses
The losses accumulated but not used in 2014 or earlier years would have to be used until the end of 2025, while the losses arising in 2015 or later years would have to be used in 5 years.
ISO 9001 Quality Certificate
Leinonen Hungary successfully obtained the ISO certificate last year, we have been operated under the quality control rules. The ISO 9001 gives more effectiveness to us, our certificate will be updated this year.
Leinonen Group as one stop service provider
The Leinonen Group (www.leinonen.eu) is all about company formation, accounting and payroll services. We provide you with advice in all these fields. Having been in business for over 20 years we have extensive experience in helping foreign companies to establish and operate their subsidiaries in our market areas.
The Leinonen Group is an expanding international company with offices in 11 countries: Finland, Sweden, Norway, Estonia, Latvia, Lithuania, Poland, Hungary, Bulgaria, Russia and Ukraine. Our customers are mainly foreign-owned companies in all these countries.
We are looking forward to co-operating with you!
Leinonen Hungary Kft.
Tel. +36 1 7811 821