The periodic monitoring of changes in tax and accounting regulations (laws, decrees).

Frequent Tax Legislation Changes

Frequent changes in the tax legislation have been a feature of Hungarian legislative practice in recent years as well . This reflects partly due to the unfavourable development of the external environment and partly to internal economic processes and the budget position. Relevant laws and decrees may change several times a year, including specific and difficult-to-interpret provisions, and often focus on specific sectors or a well-defined group of taxpayers. This poses a significant challenge for affected businesses in terms of monitoring changes and adapting to them.

Tax Legislation Monitoring Service

Andersen’s tax legislation monitoring and tracking service provides effective assistance (support?) in overcoming the challenges outlined above. The periodic reports (summaries) provided as part of the service include not only expected tax and accounting changes (in progress) but also changes that have already entered into force since the last report (with a precise reference to the amendment, a brief description of the modification and its expected impact).

Scope of Monitored Legislation

Within the framework of the service, Andersen’s tax experts primarily monitor changes related to the following laws:

• Act CL of 2017 on the Rules of Taxation
• Act CLI of 2017 on Tax Administration Procedures
• Act CXVII of 1995 on Personal Income Tax
• Act LXXXI of 1996 on Corporate Income Tax
• Act LII of 2018 on Social Security Tax (Szocho)
• Act CXXII of 2019 on Social Security (Tbj.)
• Act CXXVII of 2007 on Value Added Tax
• Act XCIII of 1990 on Duties
• Act C of 1990 on Local Taxes
• Act C of 2000 on Accounting
• Act LXXXIV of 2023 (Global Minimum Tax)

In addition to the above, Andersen also monitors emergency legislation, particularly government decrees amending the listed laws.

It is important to highlight that the scope of monitored legislation may be customized and adapted by sector and company. The aim to include all relevant changes that may have a direct or indirect impact on the client’s business activities and profit.

Timing of Tax Legislation Monitoring Reports

• The timing of the preparation of the reports (summaries) is in line with the timing of Hungarian legislation in recent years.. Accordingly, the proposed timing for the delivery of the reports is as follows:January 7 (or the last working day before it): focusing on laws coming into force with the new year.
• April 15: recording developments in the period from January 1 to March 31.
• Spring Report: recording planned changes in the spring tax amendment package (the deadline for the report is the 8th working day after the package is submitted to Parliament).
• September 15: recording changes that occurred during the summer period.
• Autumn Report: recording planned changes in the autumn/winter tax amendment package (the deadline for the report is the 8th working day after the package is submitted to Parliament).

What are the benefits of using Andersen’s service?

1. It provides reassurance that changes in tax legislation relevant to them are not ignored or passed by.
2. Provides on time information on potential tax-saving opportunities.
3. Allows for the exploitation of advantages arising from upcoming changes and the mitigation of negative economic impacts.
4. Provides more time for preparation and understanding of new compliance obligations.