Energy efficiency tax allowances introduced in Hungary
Beyond existing state subsidies for energy efficiency and renewable energy projects, tax allowances introduced in 2017 mean new types of support for energy-related investments.The establishment of an EV (“electronic vehicle”) charging station entitles the investor to the double deduction of investment costs when calculating its corporate income tax base. The maximum of such deduction is […]
Selected recipients for distributed medicines
Wholesale distributors are authorized to supply human medicines fully or partially reimbursed from Slovak public health insurance (categorized medicines) solely to pharmacies (public or hospital), and to other wholesale distributors exclusively for the purpose of delivery of the medicines to pharmacies for ambulances, providers of emergency medical services and the armed forces.
New tax return rules
Corporate income tax returns shall be submitted only electronically, using a valid electronic signature, as of 1 January 2018. Also, both corporate and personal income tax payers are entitled to submit a one-off correcting tax return in the case of mistakes identified in the annual tax return by 30 September of the year in which […]
Proportional VAT deduction
Taxable persons will be obliged to claim proportional VAT credit upon the acquisition of non-current assets with mixed (both private and business) use. The deductible proportion will be determined on the basis of certain criteria that take into account the type of the asset.
Increase of minimum insurable income
The minimum insurable income threshold has been increased along with the minimum monthly salary from EUR 214 to EUR 235 as of 1 January 2017. The thresholds of the insurable income vary with respect to different economic activities and professions and affect social security and health insurance contributions.
Country-by-country reporting (CbC) effective from 2016
The obligations of country-by-country reporting will be implemented in Czech law. It will be mandatory for multinational groups of entities whose aggregate consolidated income amounts to at least EUR 750 million. The first reporting periods are periods beginning on or after 1 January 2016.
Second stage of electronic recording of sales
The second stage of the electronic recording of sales, applying to retailers and wholesalers, was launched on 1 March 2017. Some questions were subject to extensive discussions, for instance, who will record (and when they will record) cashless payments made via the Internet, cash received on delivery, and foreign source sales.
Electronic recording of sales for cash-on-receipt
The General Financial Directorate published guidelines regarding the electronic recording of sales for e-shops and other businesses that dispatch goods via carriers which also receive payment. The reporting method primarily depends on the contractual terms and conditions set with the carrier.
Lowest corporate tax rate in EU
A flat 9-per-cent corporate income tax rate (instead of the earlier 10% / 19% progressive rate) would mean a significant advantage for larger Hungarian companies against their competitors within the CEE region.
Decreasing employment tax burden
An important measure of the Government’s employment boosting programme is the gradual decrease of the employers’ social security payments. As the first step, employers’ social security contributions would decrease from 27% to 22% from 2017 (with a further decrease envisaged over the following years).