Published: November 23 2023
of Electronic Receipts and Modifications Due to the Termination of the Double Taxation Avoidance Treaty The legislation paves the way for the widespread adoption of electronic receipts. This aims to promote digitalization and reduce paper waste. Furthermore, the legislation includes modifications necessary due to the termination of the double taxation avoidance treaty between the United States and Hungary, ensuring that tax regulations remain up-to-date and aligned with international standards.
Other Provisions: Gambling Prizes, VAT on Imported Art Works, and Global Minimum Corporate Tax
The new legislation includes provisions to exempt lottery-like gambling prizes from personal income tax, with the goal of encouraging public participation in such games. There will be preferential 5% VAT on imported art works from outside the European Union. Additionally, bottled wine with protected origin offered as business presents will be exempt from tax. Furthermore, the legislation incorporates a European Union directive on the global minimum corporate tax rate into national legislation.
Overall, these changes aim to simplify tax processes, provide exemptions in certain areas, and ensure compliance with international standards. It is important for individuals and businesses in Budapest to familiarize themselves with these new tax rules and take advantage of any benefits or options available to them.
Questions & Answers
What changes are coming to tax rules in Budapest? The legislation simplifies rules on personal income tax and contributions while streamlining taxation of sole proprietors. It exempts communications networks from the utilities tax and rolls back the tax. It extends the suspension of the advertising tax and paves the way for the adoption of electronic receipts. It also exempts lottery-like gambling prizes from personal income tax and offers preferential VAT rates for certain art works and bottled wine with protected origin.
Who does the new tax legislation in Budapest apply to? The new tax legislation applies to companies with an annual turnover of more than 750 million euros recorded in at least two of the previous four years.
Is there a global minimum corporate tax rate in Budapest? Yes, lawmakers in Budapest have voted to transpose a European Union directive on the global minimum corporate tax rate into national legislation.
What tax allowances will be introduced in Budapest? Tax allowances will be introduced for new research and development projects starting from next year in Budapest.
When will the exemptions and changes to tax rules take effect in Budapest? The exemptions and changes to tax rules will take effect at different times. Communications networks will be exempt from the utilities tax starting from 2024, while the tax will be rolled back from 2025. The suspension of the advertising tax is extended for another year. The specific timing for the adoption of electronic receipts and the implementation of the other tax changes is not mentioned in the source article.
