The Hungarian Parliament approved certain amendments to the Hungarian Corporate Income Tax Act in July 2019. Most of the changes, such as the rules of the exit taxation, are applicable from 1 January 2020. The exit taxation has been introduced in Hungary by implementing the Anti Tax Avoidance Directive (ATAD) regulations.
The Hungarian tax authority prepares the personal income tax returns for everyone it has employer information about, whether they are employees, primary producers, private individuals liable for the payment of VAT or individual entrepreneurs.
A new act on vocational training entered into force on 1 January 2020. The new law has reformed the contractual relationship between the employer and the trainee.
As of 1 January 2020, a new tax allowance is available under the Hungarian Personal Income Tax Act, which provides for that mothers raising four or more children might be exempted from the payment of personal income tax.
From 1 January 2020, the European VAT regulations will be standardized in several areas to simplify and standardize VAT management on the ground of sale of goods within the EU.
The National Tax and Customs Administration (“Authority”) has presented its vision for the future at a taxation conference held at the end of November 2019. The Authority has outlined that the emphasis will continuously be on the tax inspection of companies alongside with seizing the benefits of digitalisation and development. The principal objective of the Authority is to promote and enforce compliance with legal obligations. This objective will be supported by a new obligation (applicable as of July 2020) that requires taxpayers to provide complete data on their invoices.