From 1 July 2020, a new reporting obligation on cross-border arrangements will come into force, mandatory exchange of information on cross – border arrangements. VAT, excise tax and contributions are not covered by the reporting obligation. A default penalty of up to HUF 500,000 (roughly EUR 1,600) can be imposed upon failure to comply with the reporting obligation, or in the case of delayed, incorrect, false or incomplete execution thereof. The penalty can be up to HUF 5 million (roughly EUR 15,600) if the obligation is not met by the deadline. The first reporting deadline is 31 August 2020.
On 17 July 2019 the Hungarian Parliament approved many amendments to the Hungarian tax legislation regarding corporate income tax, VAT and other taxes. Most of the changes will come into force from 1 January 2020. We also highlight some of the new rules that have been in effect since 1 January 2019.