On 13 October 2020, the Hungarian parliament approved a Bill No. T/13258, to amend various taxation laws.
The bill contains the following measures:
- Disallow company income tax exemptions to controlled foreign companies from EU blacklisted jurisdictions on specified capital withdrawals;
- Deny corporate tax credit on car purchases for investment and energy efficiency purposes, for specified large loading spaces
- Implementation of the EU directive on digital business by applying VAT to all goods ordered from abroad from July 1, 2021;
- Construction activities lasting less than 180 days will get exemption from business tax
- Increase the tax threshold for small businesses from HUF 1 billion (US $ 3.2 million) to HUF 3 billion (US $ 9.7 million);
- Specify new jurisdictions for the Multilateral Competent Authority Agreement (MCAA) on Automatic Exchange of Financial Account Information under the common reporting standard (CRS) and for automatic exchange of country-by-country (CbC) reports;
- Implementation of the provisions of the International Arbitration Convention for Mutual Administrative Procedures (MAP) under DTAs; and
- Increase excise duties on tobacco products from January 1, 2021 in two steps.
