Hungary’s changes to the tax law are likely to become effective from 2014. The changes would comprise of the following corporate tax provisions:
- Favorable participation exemption rules in case of 10% acquisitions of share have been extended.
- Rules of permanent establishment have been changed so that non-residents real sellers can be included.
- There are measures to permit the taxpayers to take into account the direct costs of research and development (R&D) projects conducted by related parties.
- The deadline for applying a tax allowance available to entities making “sports donations” has been extended.
- Existing entity will be permitted to use certain losses of the merged entity.
Other changes to the provisions include changes to the value added tax (VAT) and excise tax provisions, and individual (personal) income tax effective in 2014.
