Don’t be afraid about the reporting

Ágnes Bejó | 10 June 2021
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Ágnes Bejó

It’s been almost a year since the obligation to report certain acquisitions of property by foreigners in Hungary was introduced. Since May last year, foreign persons can only acquire interest of a value exceeding one million EUR in strategic companies subject to reporting and the Ministry’s acknowledgement. Though at first, many had reservations regarding this authorisation obligation, which is based on the Italian practice and is one of the strictest regulations in Europe, by now it has become a concept integrated into the company acquisition market. We have summarised the experiences of the past one year.

Ban from management – when the superweapon backfires

Dániel Veres | 26 April 2021
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Dániel Veres

“The tax number of one of my companies was deleted due to some blunder, but we corrected it” – so begins a widely-known and innocent story that could happen to anyone. Then we realise in terror that due to this “blunder”, the Court of Registration refuses to register our company, or that the tax authority wants to delete the tax number of one of our existing companies. Could this have been avoided? What can be done?

Supreme Court: VAT on bad debts is to be refunded

Tamás Fehér | 17 March 2021
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Tamás Fehér

For the first time, the Supreme Court ruled on the merits concerning the refund of VAT on bad debts – and the decision was in favour of taxpayers. The judgments serve as a guideline in a number of similar cases, and may even help taxpayers with refunds claimed under the rules that came into force in 2020.

Greenfield investments could gain momentum

Levente Bihari | 11 March 2021
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Levente Bihari

2021 could greatly simplify the parcelling of jointly owned arable land. Also, the new rules will settle the status of land registered in the name of unidentifiable owners. At the same time, a clearer and more transparent title structure could not only enhance farming efficiency but also boost greenfield investments.

Henceforth taxpayers are required to “indict themselves”

Tamás Fehér | 24 February 2021
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Tamás Fehér

First reports under DAC6 were due recently from those who are parties to a cross-border transactions. Concurrently, at the last possible moment, the Hungarian Ministry of Finance published a Guide on certain issues related to the fulfilment of the reporting obligation. It is advisable, in particular, for accountants, consultants, lawyers and banks to carefully study this 38-page document, as any of them could easily fall within the scope of the reporting obligation.

The coronavirus is about to change the country of tax payment

Anilla Gondi | 8 February 2021
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Anilla Gondi

We already know that Covid is changing the way we live and work. We’re keeping away from each other, we’re traveling less, we’re talking to each through video calls, and we’re working at home. But most of us haven’t thought about how these changes may affect the country our company pays taxes in.

Too few civil actions lead to less stringency in the conduct of proceedings

Zoltán Dobos | 5 January 2021
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Zoltán Dobos

The new Civil Procedure Code), enacted almost 3 years ago, placed the conduct of proceedings on stricter foundations. As a visible result of this, the number of lawsuits has dropped dramatically in recent years: more than 20% fewer disputes have been filed with the district courts and around 50% fewer at the regional courts than before. Perhaps this is also the reason why, under a bill recently passed, the harsh rules that had seemed carved in stone are likely to be softened. 

With VAT or without it?

Levente Bihari | 4 December 2020
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Levente Bihari

VAT can cause a lot of complications when it comes to interpreting our regular contracts. Does the purchase price include VAT if the parties have not explicitly stated so? Should a guarantee withholding be made from an amount that includes VAT? Does the stamp duty need to be paid on the gross or the net price of the property? These questions are particularly timely in light of the recent reduction in the VAT rate on newbuild homes: who stands to benefit from this – the builder or the apartment buyer?

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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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