Published on Tuesday, the wealth tax proposal sets out a more complex and far-reaching framework than previously anticipated.The proposed legislation introduces its own valuation rules, meaning that the taxable value of business assets and real estate could significantly exceed expectations. Alongside the HUF 1 billion threshold and the standard tax rate of 1%, the proposal now provides a clearer picture of who would be affected, how wealth would be valued and what compliance obligations taxpayers would face.

Most of Hungary’s family-owned small and medium-sized enterprises are made up of a single business, typically a limited liability company (Kft.), but in the higher echelons of the SME sector they tend to operate as groups comprised of several companies. How are these company groups formed and what is the rationale behind them? When should you start to establish a company group?

Because of its wealth protection features and favourable tax environment, trusts have become one of the most popular tools for family wealth planning. However, it matters what assets the settlor places in the trust– a mistake could easily undermine the favourable tax treatment of the trust.

Due to the state of emergency related to the coronavirus outbreak, sooner or later many business owners, company managers, and chief legal or financial officers will be relieved of their more routine, day-to-day work. This is a time when it might be worthwhile to sort out the company’s legal or financial issues that you may not have had time for during your day-to-day operations. Here are five tips worth considering.

Investment funds are generally considered a complex, collective, highly specialised form of investment. However, an amendment that came into force from January this year, will allow a much wider range of participants to set up investment funds and fund management companies. And these funds can present very favourable opportunities, whether for acquisition purposes or for holding private assets.

Due to an EU directive adopted last year, certain rules on corporate tax are changing with effect from 2019 – including the provisions on interest deduction due to “thin capitalisation.” Although the purpose of the directive was to defeat tax avoidance and tighten up the tax regulations, the new rules on interest deduction are actually becoming more of a blessing than a curse for businesses in Hungary.

While more and more people all around the world are being bitten by the bitcoin bug, tax authorities are subjecting transactions executed with the cryptocurrency to ever closer scrutiny. Meanwhile, it is increasingly obvious that the world of bitcoin is starting to give shape to a new form of tax haven.

Numerous tax advantages can be gained if someone switches to being subject to the tax laws of another country (i.e. changes his tax residency). Although the country in which a private individual has residence is not a matter of choice, with careful planning of his personal circumstances it is possible to influence where he is taxed. And this affects anyone who takes on work abroad, whether for a short or a longer period.