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tag: personal income tax

Summer, sea, tax-free dividends

Anilla Gondi | 12 August 2021
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Anilla Gondi

For many, the summer months bring to mind sunny beaches, mouth-watering Mediterranean cuisine, colourful buildings along Portuguese streets, and cities that offer memorable cultural experiences... Yet few are aware that, beyond drawing in tourists, because of their tax systems, popular holiday resorts are also attractive destinations for affluent, well-to-do foreigners - often for periods of time longer than that of a mere summer adventure.

“183 days” and similar misconceptions… when can we really avoid Hungarian taxation?

István Csővári | 8 September 2020
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István Csővári

"I have a Slovak address card, so I don’t have to pay taxes in Hungary…" "I just have to make sure not to spend more than 183 days at home". "I’m a digital nomad, I don’t pay taxes anywhere." Many similar misconceptions circulate in Hungary regarding the rules of tax residence. However, tax regulations are “much smarter” than that and those who follow false illusions may even be exposed to criminal liability.

KATA in the crosshairs

Péter Barta | 12 February 2020
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Péter Barta

While dozens of programmers, engineers and hairdressers continue to opt for KATA [the fixed-rate tax for enterprises categorised as “small taxpayers”] in Hungary, the tax is increasingly coming under fire from all sides. Apparently, the Hungarian Tax Authority (NAV) is stepping up its investigations into businesses who employ KATA payers, and at the same time rumours are also flying about a planned KATA tightening.

The taxation pitfalls of trading abroad

István Csővári | 24 April 2019
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István Csővári

Thanks to the virtual mobility afforded by the internet, a growing number of people today are using online trading platforms to buy and sell foreign securities through brokers abroad. However, these investors in foreign stock markets are often gambling not only with their money, but with the tax system, too – often without even being aware of it.

Are options an option?

István Csővári | 15 April 2019
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István Csővári

In line with the models applied in the English-speaking world, the granting of a stock option to a company’s manager, or to the members of its management team, is becoming increasingly widespread in Hungary too. A stock option not only gives the manager an incentive to increase the value of the company, but after exercising the option it also creates an opportunity for him or her to have a say in shareholder decisions. The regulations related to stock options in Hungary, however, carry a good deal of tax-related pitfalls. It pays to be aware of these when devising your stock option plan.

I am selling my company ... how am I taxed?

Ádám Fischer | 8 November 2018
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Ádám Fischer

A growing number of family businesses are coming up for sale these days. This is partly due to the favourable investment environment, and partly to the difficulties to pass on businesses to the next generation. A critical aspect in such deals is: what kind of tax implications the sale will have for the sellers. While, in some cases, the sale can be made tax-free, at other times a private individual divesting his or her share in the business can be faced with a tax liability of up to 34.5%.

TBSZ: An oldie, but a goodie

István Csővári | 19 April 2018
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István Csővári

Ever since it was introduced eight years ago, the long-term investment account (TBSZ) has been a source of continuous excitement for tax advisors and their clients interested in saving on tax. This is not surprising, as the TBSZ allows business owners to take the income generated by their companies without any tax liability. And although some classic approaches to tax planning based on the TBSZ have closed over time, others are still available.

“I may be gone for some time” – tax implications of moving abroad

Ákos Baráti | 1 February 2018
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Ákos Baráti

Numerous tax advantages can be gained if someone switches to being subject to the tax laws of another country (i.e. changes his tax residency). Although the country in which a private individual has residence is not a matter of choice, with careful planning of his personal circumstances it is possible to influence where he is taxed. And this affects anyone who takes on work abroad, whether for a short or a longer period.

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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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