Dear Our Client!
Please let me tell you few words about the proposed tax changes (some of these were sent to you in the Summer)
- From 1st January 2019, the VAT-free status will be raised up to 12 million HUF annual income. Below this amount, you don’t need to apply VAT status.
- From 1st January 2019, for leased or rented cars, you can reclaim the 50% of charged VAT as the supplier. You have the possibility to reclaim more than 50%, but in this case you are obliged to lead road records, so VAT can be deducted according to the ratio of personal and business usage.
- The preferential VAT rate (5%) for newly built houses will be valid until 31st December 2019. The VAT rate will remain 5% after 31st December 2019 in the following cases:
– the registration of ownership shall be submitted until 31st December 2019 to the property register,
– until 31st December 2019, the property must be structurally completed, which fact must be declared to the tax office on a form.
- From 1st January 2019, the immediate depreciation for fixed assets will be raised from HUF 100000 to HUF 200000 (net amounts).
- From 1st January 2019, in the case of companies who are obliged to tax replenishment, if the replenishment turns out to be inappropriate, the default penalty will be reduced from 20% to 10%
- From 1st January 2019, tax allowance for families with two children increases by HUF 5000 per month, amounting HUF 20000 per month per child.
- From 1st January 2019, the monthly amount of the health care contribution will be increased from HUF 7320 (244 HUF per day) to HUF 7500 (250 HUF per day).
- From 1st January 2019, the maximum amount of development reserve will be increased from HUF 500 million to HUF 10 billion.
- From 1st January 2019, the cultural tax will be abolished, which taxed pornographic content.
- From 1st January 2019, tax base of the companies using KIVA will be changed a little. It was supplemented with the in-kind benefits.
- From 1st January 2019, in the case of renting a property, the public utility services related to the use of the property shall not be considered as revenues on the lessor’s side, so they shall not be accounted as costs by the renter either.
- From 1st January 2019, the scope of those who are subject to the innovation contribution will be considerably expanded. Micro- or small enterprises based on their individual indicators could be obliged to this tax according their group level. The amount is approx. 1/6 of the local business tax.
Sources: adozona.hu, ado.hu, pallas70.hu
Budapest, 26th October 2018.
Best Regards,
Perscriptor Accountancy Office Ltd.
