An important deadline is coming on 30 September
With the arrival of autumn, the extended deadline set out in the Hungarian Government’s Economic Action Plan (the points enacted by Government Ordinance 140/2020 (IV. 21.)) for filing the 2019 financial statements and annual tax returns (corporate income tax, innovation contribution, energy providers’ income tax, local business tax, small enterprises itemised tax (Hungarian “KIVA”) is inevitably approaching. Companies should fulfil all these obligations latest on 30 September 2020. However, based on the previous years’ experience, it not recommended to leave them too late.
It is particularly true for finalising the annual tax calculations and filling out the tax return forms, as numerous questions may arise which require further discussion in-house and probably justify the use of an external tax advisor. Such questions may be, for example, the transfer pricing issues, the expenses incurred not in the interests of business activities, disposal of the paid tax for beneficiary purposes (team sports support, filmmaking support) and using other tax benefits available in corporate income tax. As long as local business tax is concerned, such questions may require particular consideration as decreasing the net sales revenue by the value of recharged services and cost of sold goods; no less important is the apportionment of the local business tax base to different municipalities where the company performs business activities.
Based on our experience, each year many companies have no choice but to leave the tasks related to the filing of the annual financial statements and tax returns for the last few days before the final deadline. However, in our view still bigger errors are avoidable, or more cost-efficient tax solutions may be found if prior to filing of the annual tax returns companies duly consult with a tax expert.
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The tax and accounting experts of VGD Hungary provide effective assistance in solving any issues arising in connection with
the annual tax returns and financial statements due at the end of September.
VGD Hungary’s team will be pleased to support you in any questions you may have.
