On the 3rd of May, 2016, after the press conference of András Tállai, the Minister of State for Parliamentary Affairs and Taxation and the Commissioner for the National Tax and Customs Administration, the Hungarian government submitted the current term’s most important law amendment proposal to the Hungarian Parliament.
Nowadays, the term “offshore” demonstrates a negative expression mostly given to the tax dodger companies, rather than a legal term. Although basically most of these companies are operating legally secure and transparent, the tax evasion scandals in the recent years left the mark of prejudice especially on those who had been established in exotic countries. There are several reasons why these companies are operating and we are going to cover these details, conditions and restrictions in our current, short newsletter.
According to a general rule a supplier of goods reports output VAT. However in some situations a purchaser of goods, not a supplier, is the one liable to report and settle output VAT related to the given supply. These situations include both domestic supply of goods by supplier seated abroad, as well as supply of listed goods by supplier seated in Poland.
After 2015 January 1st, a new VAT regulation entered into force about the distance selling and as under distance selling shall be understood the electronically supplied services, which category contains the distributors of mobile applications; we must review this regulation to clear the taxation about this topic.
As one of the main measures to detect and prevent tax evasions, so-called VAT Control Statement was introduced in Slovakia since January 1, 2014. The VAT control statement has to be submitted by VAT payer for every taxable period (i.e. calendar month or quarter) for which he/she is obliged to submit VAT tax return. In this connection, we would like to inform you that the new form of VAT Control Statement is effective as of April 1st, 2016.
We would like to inform you Order nr 1105 / 2016 has been published regarding the amendment of Order Nr. 3769/2015 regarding the informative return 394 (report of the domestic supplies and acquisitions of goods and services carried out by Romanian VAT payers) (Official Gazette no 242 / 1.04.2016).
As the real estate market continues to boom, details about taxation of this industry can be a very interesting topic and may affect many of us. It would be useful to know what type of possibilities and conditions of taxation are in Hungary in connection with the income gained from let of properties. Our following summary will show the most important rules on property rental.
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The transfer pricing rules regulate the prices charged in the intercompany transactions. The main goal is to maintain the arm´s length principle. Pursuant to the Slovak regulation, every related parties obliged to prove the method applied for setting the prices of controlled transactions between related parties and to keep a relevant documentation about this method.
In Hungary there are several types of favorable taxation options for small companies, so we’re going to discuss these in this current newsletter, to clarify whom and within what conditions is worth to choose them.