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.

Including an earn-out provision in a corporate sale transaction can be an effective way to ensure a smooth and efficient transfer of a company. However, it may also introduce significant tax challenges. As such, it’s important to approach the inclusion of such a provision with careful consideration.

The new R&D tax credit has been in place for over half a year, and soon businesses involved in innovation will need to decide whether they will pay taxes under the new or old tax credit scheme at the end of the year. However, due to the complexity of the regulations and the interplay between various incentives, making the right choice is often far from simple.

As of 1 January 2024, a long-standing dream of startups is coming true: these companies can provide shares to their employees and executives tax-free. As a result, the ownership mindset and motivation of these individuals can be efficiently ensured without tax burdens.