Supplementary Contributions: Overview and Expansion Under the 2022 Legislative Changes to Most Forms of Hungarian Company Law
In order to ensure the financial sustainability and stability of economic entities, continuous refinement of the legal framework is necessary. The new legislative provisions that came into effect in 2022 placed significant emphasis on the extension of the role of supplementary contributions, thereby addressing the challenges posed by an increasingly complex economic environment. Supplementary Contributions: […]
Compulsory auction of real estate in Hungary
The auction of a property is the most severe compulsory measure that can be used in the event of non-payment of an enforceable monetary claim. However, with the exploding real estate prices, compulsory auctions are also becoming an attractive way to purchase real estate – often below market price – and are attracting more and […]
Treatment of uncollectible claims from an accounting perspective
In accordance with Section 3.1 (10) of the Hungarian Accounting Act, so-called “uncollectible claims” are claims that (a) cannot be collected in whole or in part by compulsory enforcement (b) have been paid off by the debtor in the course of liquidation proceedings (c) are not covered according to a written certificate from the liquidator […]
EU Regulation 1169/2011 on the provision of food information to consumers
The last part of Regulation 1169/2011/EU on the provision of food information to consumers, the part on nutrition labelling, which has not yet entered into force, will enter into force on 13 December 2016. The rules on nutrition labelling are set out in Articles 29-35 of the Regulation. According to Article 30(1), the mandatory nutrition […]
Termination of employment relationships
Each country in the EU has its own rules on how employment relationships can be terminated in accordance with the law. In Hungary, the rules of the 2012 Labor Law apply. According to the new rules, the parties are allowed to make more specific agreements on the termination conditions, for example regarding the notice period […]
Placing products on the market in Hungary – labeling
The EU forms a single market, but there are still many questions when products that are already in commercial circulation in an EU country should also be placed on the market in Hungary.The uncertainties arise – justifiably – primarily from the fact that consumer protection plays a prominent role in the EU, even across the […]
Important changes to the law on fees
1.1 Disproportion between performance and consideration (usury) In a market economy, the purchase price usually corresponds to the market value of a product. Deviations – through agreements between the contracting parties involved – usually serve the purpose of reducing taxes, says the Ministry of Finance. These agreements occur primarily in the area of real estate […]
GROUP LAW REDESIGNED
The legal differentiation between recognized and de facto corporate groups has been newly introduced. The prerequisite for a recognized corporate group is that the controlling company is obliged to prepare the consolidated annual financial statements, or that a control agreement has been concluded, which was submitted to the commercial registry court for registration within 15 […]
Basic Features of VAT Part 3
Tax on consumption idea and territorial connection The directives issued at European level understand VAT explicitly as a consumption tax. The common VAT system is based on the principle that taxation takes place in the country of actual consumption. The concept of consumption is, however, indefinite. The VAT Directive does not contain an explicit definition […]
Basic Features of VAT Part 2
Neutrality via the net all-phase principle with input tax deduction The common VAT system is based on the following principle: Each taxable company in the supply chain calculates the sales tax based on the consideration it receives from its respective customer at the tax rate applicable to the delivery or service provided. At the same […]