These days, it is difficult to scroll through the news without coming across the recurring trio of criminal proceedings, public funds and breach of fiduciary duties. Breach of fiduciary duties has once again come into the spotlight recently, with the proceedings launched in connection with grants awarded by the National Cultural Fund (NKA) giving the issue considerable momentum. However, this offence is by no means confined to public funds and public figures: it can also arise in the management of a company's assets, the assets of a state institution or even those of a local authority. But what does breach of fiduciary duties actually mean, where is the line between a bad decision and a criminal offence, and what should anyone entrusted with managing another party's assets be aware of?

One of the less visible yet potentially serious pitfalls of Hungarian tax law is the concept of the “payor” (kifizető). Many foreign companies assume that, if they have no permanent establishment or branch in Hungary, they are outside the scope of the Hungarian tax authorities. The reality is more nuanced. Moreover, a Hungarian individual employed by a foreign payor may also find themselves in an uncomfortable position as a result.

Published on Tuesday, the wealth tax proposal sets out a more complex and far-reaching framework than previously anticipated.The proposed legislation introduces its own valuation rules, meaning that the taxable value of business assets and real estate could significantly exceed expectations. Alongside the HUF 1 billion threshold and the standard tax rate of 1%, the proposal now provides a clearer picture of who would be affected, how wealth would be valued and what compliance obligations taxpayers would face.

A new anti-corruption super-authority, accession to the European Public Prosecutor's Office, mandatory tax authority audits and the return of asset-growth investigations: within a few months, the system for protecting public assets has been fundamentally reshaped. Anyone who manages public funds or EU grants may, in future, find themselves facing as many as four different authorities.

The Hungarian Competition Authority Is Stepping Up Enforcement: Influencers in FocusThe recent case involving Coca-Cola and influencer Whisper Ton has attracted significant media attention, resulting in a HUF 5 million fine for the soft drinks manufacturer, while the influencer received a warning. This makes one thing clear: the regulation and enforcement of influencer marketing remains a long-term focus of the Hungarian Competition Authority (GVH), regardless of the size of an influencer’s followers or the business under investigation.

Many manufacturers take it for granted that they can have a say in the pricing of their products, as they know their competitors and want to position their brand in the market. However, this may raise legal concerns. Moreover, as can be inferred from the guidance recently published by the Hungarian Competition Authority, the authority will continue to take a firm action against unlawful resale price fixing.

The development tax allowance offers one of the largest tax-saving opportunities in the Hungarian tax system: it can enable companies to reduce their calculated corporate tax liability by up to 80%. However, careful planning and avoiding potential pitfalls are essential to making full use of the allowance. In addition, the reporting obligations related to the allowance have been expanded as of this year.