A hidden change in the Labour Code – employers listen up!

Dóra Ágnes Nagy | 12 January 2023
Dóra Ágnes Nagy

As many already know, the provisions of the Labour Code (LC) have changed substantially with effect from 1 January. Amid the many changes, however, there’s one in particular that may escape employers’ attention but could end up costing them dear: the broadening of the burden of proof on employers.

Tax relief on royalties for software developers: broader than you might think

Anilla Gondi | 16 December 2022
Anilla Gondi

A widely applied business model among software development companies is providing software development services for other businesses. Few of these companies know that they can still claim tax relief in this case too, just as they would be able to if they were developing software for their own purposes.

Who pays the case-winning lawyer?

Zoltán Dobos | 2 December 2022
Zoltán Dobos

If you’ve never sued or been sued, you may be forgiven for thinking that the costs of the lawsuit are paid by the losing party. However, after a case is closed, the winner of the suit may easily find that its win was a Pyrrhic victory, and that it is left with substantial costs to shoulder, without compensation. What are the impacts of this on business and how should parties best manage the related risks?

Acquisition of ownership interests by foreigners in Hungary – subject to authorisation forever?

Ágnes Bejó | 17 November 2022
Ágnes Bejó

More than two years ago as a transitional rule, the acquisition of ownership interest in Hungarian companies by foreigners became subject to authorisation. The rule seems to have become permanent in the meantime, though many questions of legal interpretation remain unanswered. Some market players are following the process with resignation, others with serious reservations.


Ákos Baráti | 27 October 2022
Ákos Baráti

Most of Hungary’s family-owned small and medium-sized enterprises are made up of a single business, typically a limited liability company (Kft.), but in the higher echelons of the SME sector they tend to operate as groups comprised of several companies. How are these company groups formed and what is the rationale behind them? When should you start to establish a company group?


Péter Vajk Balogh | 20 October 2022
Péter Vajk  Balogh

There are many reasons why tax disputes drag on for so long in our legal system. Of these, one was eliminated by a decision recently taken by a chamber of Hungary’s supreme court, the Curia. The question, of course, is how far this decision will set a precedent.

Another burden on renewable energy companies?

Boglárka Zsibrita | 4 October 2022
Boglárka Zsibrita

On 30 September 2022 the Council of the European Union discussed and adopted a draft EU extra tax regulation aimed at the energy sector. Under the regulation, member states will receive, as budget revenue, part of the windfall profits generated by the energy sector. For Hungarian operators, the legislation is particularly important in view of the windfall taxes introduced for renewable energy producers in June 2022.

Can my business pay cash?

Tamás Fehér | 23 August 2022
Tamás Fehér

The title may sound like a bogus question – but it is far from it. What many people do not know is that cash payments are prohibited or restricted between businesses in many cases. And even fewer people know that cash payments over a certain threshold are subject to the full rigour of money laundering regulations.

Who is this blog addressed to?

The law is constantly in flux. While many people may find this intimidating, for us it’s precisely what makes it so exciting. We’d like to share this attitude with businesspeople and managers, and with those who just have an interest in business law, in the form of a regularly updated blog that discusses the latest tax law and commercial law issues in an accessible style. Feel free to send your questions and suggestions for topics you’d like us to cover to blog@jalsovszky.com.


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