Company audit in Hungary
Hungarian companies are required to file financial statements and an annual report electronically with the Ministry of Public Administration and Justice every year. The financial statements are publicly available.
Every company is also obliged to file an annual report. The annual report can be full, simplified and consolidated.
A simplified report is filed if total assets do not exceed 1,200 million HUF, turnover does not exceed 2,400 million HUF and the number of employees is less than 50 for 2 consecutive years. Companies that do not meet these criteria must prepare a full report. There are special procedures for financial organizations and insurance companies.
Every company is also obliged to file an annual report. The annual report can be full, simplified and consolidated.
A simplified report is filed if total assets do not exceed 1,200 million HUF, turnover does not exceed 2,400 million HUF and the number of employees is less than 50 for 2 consecutive years. Companies that do not meet these criteria must prepare a full report. There are special procedures for financial organizations and insurance companies.
Companies are exempted from mandatory audit if the following conditions are met for 2 consecutive years:
1
Annual net assets do not exceed 300,000,000 HUF
2
Number of employees not more than 50 persons
Deadlines for filing financial statements
Generally, the fiscal year coincides with the calendar year with some exceptions. Companies must prepare an annual report within 150 days from the end of the financial year (180 days in the case of a consolidated report).
If a company fails to comply with the obligation to publish and file reports, it may be fined up to HUF 500,000.
If a company fails to comply with the obligation to publish and file reports, it may be fined up to HUF 500,000.
Currency control
There are no currency controls.
Income tax
The tax rate is 9%. If the company's turnover exceeds 500 million HUF, the rate is 19% Paid by resident companies on worldwide income. Non-resident companies pay taxes on income earned in Hungary.
Dividends paid to a Hungarian company are exempt from income tax, except for dividends distributed by a controlled foreign company.
Dividends paid to a Hungarian company are exempt from income tax, except for dividends distributed by a controlled foreign company.
Capital gains tax
No capital gains tax, is included in the income tax base and taxed at 10% or 19%. Not levied if the dividend tax exemption applies.
If the capital gain arises after the sale of the company's shares to a person resident in a country with which there is no double tax treaty, the rate is 19%. In all other cases, a 10% charge is levied.
If the capital gain arises after the sale of the company's shares to a person resident in a country with which there is no double tax treaty, the rate is 19%. In all other cases, a 10% charge is levied.
Taxes at source
Dividends, interest and royalties paid to a non-resident company are not subject to withholding tax. Dividends, interest and royalties paid in favor of a non-resident with a country of which Hungary does not have a double tax treaty may be taxed at the rate of 15%.
Annual fee
The annual filing of the Annual Return is accompanied by a fee of HUF 3,000, no stamp duty is payable.
Questions about taxes in Hungary
The income tax rate in Hungary is 15%.
Residents pay tax on worldwide income.
Non-residents pay tax on income earned in Hungary.
Residents pay tax on worldwide income.
Non-residents pay tax on income earned in Hungary.
Employer pays social contribution - 13% (from January 2022) The social contribution rate for employees is 18.5%. Contribution to the training fund is 1.5%.
Stamp duties apply:
- On gifts and transfers of property and property rights. For gratuitous transfers of residential property, stamp duty is levied at the rates of 9% and 18% in respect of other property. The transfer of property to close relatives or a spouse is not subject to tax.
- when acquiring real estate, property rights, shares in companies that directly or indirectly own real estate in Hungary. The rate is 2 - 4% of the market value of the object, but not more than 200 million HUF.
This tax is levied by municipalities where the legal entity operates and is deductible for income tax purposes. The tax rate is set by the municipality itself, but should not exceed 2%. Some regions do not have this tax, e.g. Budapest.
This fee is paid at the rate of 0.3%. Medium and small businesses are exempt from this fee.
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