Value Added Tax (VAT) - deduction right
Until 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 the same period when the performance date of the invoice was. It means that if you get your supplier invoices too late you can not put the deductible VAT for the next period, but you always have to make VAT self revision.
Value Added Tax (VAT) – changes in percentage
The rate of VAT will decrease from 27% to 5% for pork and for newly built houses and apartments. Practically it should affect the final prices, so the gross prices of these products should be decreasing.
Personal Income Tax (PIT)
The most important change in PIT is that the flat rate will be reduced by 1% - from 16% to 15%. The government wants to continue this decreasing process and in some years the percentage should be less than 10%.
Tax allowances for families with two children
From 2016 there is a change that will help increase a large number of families’ net income: families with two children will receive family tax base deduction in the amount of HUF 12 500/month/child, instead of the HUF 10 000/ month/child that was effect in 2015. This change will result in a monthly net saving of HUF 5 000 to families with two children.
Change in issued capital
From 15th of March in case of Kft the minimum issued capital will be 3.000.000 HUF, it means that those who have less issued capital shall increase it at least to the minimum level. For the process of increasing the issued capital you need to contact your lawyer first and prepare the needed documents, you will also need the latest annual report that should be provided to the lawyer to decide what can be the source of the increase of the issued capital.
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.
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