Undertakings must report and pay corporate tax on the income they earn from their economic and business activities, so if your undertaking is liable to pay corporate tax in Hungary, you are required to file a corporate tax return and keep double-entry accounts.
You must prepare accounting records (in Hungarian) of the operation, assets, finances and income of your undertaking. Entities liable to pay corporate tax must file a tax return together with an advance tax return. (Except for entities which, when certain statutory conditions are met, submit a statement on a form substituting for return.)
In case of late payment of your corporate tax, you must pay a late payment charge the rate of which is one 365th of the central bank policy rate effective on the day of the default – or if you receive budgetary support, on the day it is used (charged) before the due date – plus 5 percentage points for each calendar day.
If you do a self-assessment and it reveals arrears, you must pay a self-assessment charge.
In case of delinquent taxes you must pay tax penalty.
If as taxpayer you fail to meet one of your statutory obligations, the tax authority may impose a default penalty which can be as much as HUF 500 000.
You must continuously keep accounting records and prepare accounts at the end of the financial year.
The deadline for submitting annual corporate tax returns is 31 May following the fiscal year.
If you are liable to pay advance tax every month, you must pay advance tax before the 20th of each month. In case of quarterly payment you must pay advance tax before the 20th of the month following the quarterly reporting period.
Accounts must be submitted to the Companies Information Service through the On-line Reporting and From Completion System (OBR).
Return Form 29
Return Form 29EUD
Return Form 71
The corporate tax rate is 9 per cent. The 9 per cent rate is applied to a positive tax base. The tax base is the adjusted profit before tax.
By multiplying the tax base by the corporate tax rate, you get the calculated tax amount. You must deduct the rebates on corporate tax and the amount of tax paid abroad from the calculated tax amount to get the corporate tax actually payable.
The competent directorate of the Hungarian tax authority (for foreign undertakings, the Large Taxpayers Tax and Customs Directorate.
Mandatory accounting activities are supervised by the Company Information and Electronic Company Registration Service of the Ministry of Justice (Company Service).
Businesses are required to maintain contact with public bodies electronically which is ensured by the Company Portal service. To use the Company Portal, the legal representative of the business or their proxy must register on the Portal. Accounts can be submitted to the Company Service after registration.
Corporate Tax Return 29 must be completed in Hungarian and amounts must be denominated in HUF.
Form 29EUD is filed by pre-companies, or taxpayers changing to a financial year other than the calendar year or from HUF to another currency, from a foreign currency to HUF or from a foreign currency to another foreign currency.
Tax Return 71 is to be filed by businesses which cease their activity or are dissolved because of transformation. This is the Form to be submitted also when an entity liable to pay corporate tax registers for the flat-rate tax of small companies or small company tax.
The use of rebates is conditional on certain requirements being met. Taxpayers are only eligible for a rebate if they meet the relevant statutory conditions. Rebate rates vary, rebate is granted by not having to pay the corresponding amount of tax. Available rebates:
Typically, on account of the same reasons tax rebates are only granted once.
Corporate tax must be paid to the tax authority’s (NAV) Corporate tax account 10032000-01076019.
List of bank account numbers: NAV – Bank account numbers
Date of the case description: 13 August 2020
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Act LXXXI of 1996 on Corporate Tax and Dividend Tax
Act CL of 2017 on the Rules of Taxation
Act CCXXII of 2015 on the General Rules of Electronic Administration and Trust Services
Act C of 2000 on Accounting