We would like to inform you about the changes introduced this year, which will come into effect during the FY of 2013:
1. Company car tax
From 1 July 2013 the company car tax in respect of leased vehicles – should be paid by the lessee instead of the lessor. This means that companies, which has leased their vehicles within a permanent operative leasing (term is more than 1 year) will have an additional administration liability. The company car tax should be paid on quarterly basis, therefore this new regulation should be applied firstly in the tax return for the period of July-September 2013 (the deadline is 20 October 2013). This change means, that the leasing companies are liable to decrease the leasing fee with the amount of the recharged company car tax.
2. Free investment zones
The Government has published the list of the cities, which should be qualified as “free investment zones” – where additional corporate income tax benefits may be obtained. The list of the cities can be found in the Government Decree nr. 27/2013 (date of issue: 12 February 2013).
3. Green tax
There are minor changes in the green tax regulations with an effective date of 1 June 2013.:
- New codes have been introduced in respect of the packaging materials (“CSK” codes)
- There is a possibility that the first purchaser can take over the green tax liability if at least 60% of the products are transported outside of Hungary. According to the new rule the 60% rate should be reviewed on annual basis.
- The scrapped items during the production, the research and development expenditures will be exempted from the green tax regulations.
4. Sport incentives
Based on the modified regulations there are more limited possibilities to utilise the sport incentives as corporate income tax benefit provided by company.
Based on the new regulations the companies are liable to provide an additional support, which is 75% of the amount included on the support certificate, which should be qualified as non deductible item.
5. New tax – marketing tax
Based on preliminary information a new tax would be introduced to those companies, which activity is publishing marketing/advertisement. Based on the preliminary information such income would be taxable with the following rates, the tax base would be the net sales revenue of these companies:
- until the tax base of 1 billion HUF: 0%
- between the tax base of 1 billion HUF and 5 billion HUF: 1%
- between the tax base of 5 billion HUF and 10 billion HUF: 10%
- above 10 billion HUF: 20%
The tax advance payment in 2013 should be paid in two parts: until 20th August 2013 and until 20th November 2013. The basis of the tax advance is the net sales revenue – gained from marketing/advertisement in 2012.
As the legislation has not yet been accepted by the Parliament, therefore this new tax and the details can be modified.
We hope the above remains useful. Should you have any questions please contact us or our tax department.