Legislation concerning the establishment of the 2021 Hungarian central budget was published on 14 July 2020.
The legislation includes the following tax law changes.
Mandatory automatic exchange of information in relation to reportable cross-border arrangements (DAC6)
The DAC6 reporting deadlines applicable to intermediaries, taxpayers, and the Hungarian tax authority are deferred by six months. Under the measures, the following deadlines are provided:
Under the legislation, associations and foundations are exempted from paying building tax and land tax in connection with real estate that is under their property management, but in fact are owned by the Hungarian government.
In addition, the legislation repeals the regulation of the local business tax “top-up liability.” This previously applied to those taxpayers that were subject to corporate income tax and kept their books with double-entry bookkeeping, and had net sales revenues exceeded HUF 100 million in the preceding tax year.
To simplify the tax system, the legislation removes provisions concerning local building tax liabilities of advertising platforms from the local tax law.
A reduce value added tax (VAT) rate of 5% has been introduced for the sale of any new residential apartment located in so-called “rust zones” on the condition that the apartment forms part of a multi-apartment building and its size does not exceed 150 m2..
Read an August 2020 report prepared by the KPMG member firm in Hungary
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