OUR ACCOUNTANCY AND TAX SERVICES
We offer the following services:
- Book-keeping
- Preparation and submission of VAT returns
- Preparation of either monthly, quarterly or yearly management accounts
- Preparation of accounts
- Completion and filing of online company tax returns
- Completion and filing of online individual tax returns
- Registration of new businesses for tax and VAT
- Tax advice for small/medium sized businesses and individuals
- Resident and non-resident tax advice
- Representation of clients’ companies at the authorities
- Financial planning and controlling
BUSINESS SET UP – HUNGARY
In Hungary you can set up the following kinds of business:
- Joint Stock Company (public or private)
- Limited Liability Company
- Limited Liability Partnerships are also available but less common
All businesses have a legal requirement to keep full and complete books and records.
JOINT STOCK COMPANIES
- Owners bear no liability for the operations
- ‘Zrt’ sells its shares through a private offer to the founders
- ‘Nyrt’ sells shares publicly
- Minimum capital is HUF 5M (approx. EUR 16K) if private, and HUF 20m if public
- Some business activities (i.e. finance, insurance, etc.) can only be conducted through this form of company
LIMITED LIABILITY COMPANIES
- This is the most common form of company in Hungary
- One owner and one director is sufficient
- Liability is limited to the capital input of the shareholder
- Minimum share capital is HUF 500,000 (approx. € 1,600)
- Can be owned by foreigners and foreign companies (as a subsidiary)
PARTNERSHIP
- Minimum of one general partner and one limited partner
- The general partner’s liability extends to his/her private assets
- The limited partner is only liable up to the value of his/her investment
- There is no minimum capital requirement
- Usually used for small family businesses
MAIN TAXES IN HUNGARY
CORPORATION TAX
This is based on the profits of the business. As of 2017 Hungary boasts a corporate tax rate of 9%, one of the lowest in Europe.
VAT
All Hungarian businesses must charge customers VAT on the sale of all goods and services at a rate of 27%. Reduced rates between 0% and 18% also apply to certain goods.
Unlike many EU countries, in Hungary every business is registered for VAT and is thus a VAT-payer. Hungarian businesses invoicing foreign clients do not charge VAT if the client is a company registered in the EU with a valid EU VAT number, or a company registered outside the EU but in a jurisdiction that holds a bilateral no-VAT agreement with Hungary (e.g. the US). All private (i.e. non-corporate) buyers must be charged VAT.
Businesses declare VAT either quarterly or monthly, depending on their volume.
Newly incorporated companies come with a local and an EU VAT number from the start.
DIVIDEND TAX
Companies’ profits after taxes can be paid out in the form of dividends to the owners. In this case, if the owner is a Hungarian resident, they must pay a Dividend Tax that is currently set at 16%. Some portion of the dividend taken may also be subject to social security contributions. Non-residents normally pay Dividend Tax in their home country but this depends on bilateral agreements between Hungary and the given country.
Please contact us on +44 (0)208 421 7474 or send an email to us and a member of our team will contact you shortly.
Enquire About Our Accountancy & Tax Services
For further information, please contact us on +44 (0)208 421 7474 or fill in the form below: