Horizon Solutions

Horizon Solutions Horizon Solutions Ltd. offers tax consulting services in Budapest.

Trump's Unilateral Tax Retaliation: Hungary has recently found itself in a precarious position within the global tax lan...
05/02/2025

Trump's Unilateral Tax Retaliation: Hungary has recently found itself in a precarious position within the global tax landscape. Some years ago, the country lost its tax treaty with the U.S., leaving its businesses unprotected against potential unilateral tax increases under Section 891 of the U.S. Internal Revenue Code. This development places Hungary among the jurisdictions most vulnerable to the U.S.'s retaliatory tax measures, particularly in the context of the OECD's Global Minimum Tax initiative. As a result, Hungary's role in the international tax arena is now more critical than ever, as it navigates the challenges posed by the absence of formal protections against discriminatory taxation.

The Scope of Section 891

The latest executive actions by U.S. President Donald Trump have sent shockwaves through the international tax landscape.

The latest executive actions by U.S. President Donald Trump to activate Section 891 have sent shockwaves through the international tax landscape.

Taxation of Digital Nomads in Hungary: As the trend of remote work continues to rise, many professionals are choosing to...
05/02/2025

Taxation of Digital Nomads in Hungary: As the trend of remote work continues to rise, many professionals are choosing to live a more flexible lifestyle as digital nomads. Hungary has emerged as a popular destination for these individuals due to its rich culture, vibrant cities, relatively low cost of living and its favourable tax system. Taxation is an important consideration for anyone planning to live and work remotely in Hungary. This article provides an overview of the key aspects of taxation for digital nomads in Hungary.

Personal Income Tax in Hungary

Hungary has a flat personal income tax rate of 15% for individuals. This rate applies to all income types, including salaries, freelance income, and investment returns. However, entrepreneuers should pay 9% tax on their profit.

Remote work continues to rise, thus, many professionals choose to live as digital nomads. Hungary offers rich culture, vibrant cities, low taxes.

The global minimum tax is no longer a distant concept for multinational enterprises (MNEs) and large domestic corporate ...
05/02/2025

The global minimum tax is no longer a distant concept for multinational enterprises (MNEs) and large domestic corporate groups in Hungary. With the recent release of the required filing form, businesses must act swiftly to ensure compliance with the 15% effective tax rate of the global minimum tax. Here's what you need to know to stay ahead.

Hungary’s Compliance Mechanism

Hungary achieves the global minimum tax rate through a “top-up tax” system, supplementing its existing taxes, such as corporate tax, local business tax, and the innovation contribution. This approach ensures that the total tax burden meets the minimum threshold, with the top-up tax covering any shortfall.

Key Filing Deadlines: December 31, 2024

The GLOBE (global minimum tax) filing form must be submitted by December 31, 2024. The obligation applies to:

- Domestic group members of multinational enterprises or large domestic corporate groups with tax residence in Hungary.

With the recent release of the required filing form, businesses must act swiftly to ensure compliance with the 15% Global Minimum Tax in Hungary.

In intra-EU supplies of goods, transactions often involve participants acting as both sellers and purchasers in the same...
05/02/2025

In intra-EU supplies of goods, transactions often involve participants acting as both sellers and purchasers in the same transaction, while the product concerned is delivered only once, directly from the first seller to the last buyer; for VAT purposes, these transactions should be analysed carefully.

These are known as chain transactions, whereas triangular transactions are actually three-party chain transactions, since it is true that more than one sale takes place between the parties in such a way that the product goes directly from the first seller to the final purchaser.

In the case of these transactions, it is particularly important to examine the tax obligations of each participant, since typically the participants are interested in exempt sales, whereas only one sale can be exempt in the case of such transactions.

In intra-EU supplies of goods, VAT transactions often involve participants acting as both sellers and purchasers while product is delivered only once.

Unlock Thousands of Euros in Family Tax Benefits for Foreign Workers in Hungary – Even Retroactively Through Self-Revisi...
05/02/2025

Unlock Thousands of Euros in Family Tax Benefits for Foreign Workers in Hungary – Even Retroactively Through Self-Revisions

There are various tax benefits available in Hungary, like family tax benefit, that foreign workers may not be fully aware of, yet these advantages can offer substantial financial relief to expatriate families over the years. For instance, you could save in tax through family tax benefit approximately EUR 308 per year with one child, EUR 615 with two children, or up to EUR 3,046 annually with three children. On top of this, the 2021 tax rebate can provide an additional maximum benefit of EUR 2,074, creating a significant total.

The best part? These benefits (family tax benefit) aren’t lost if missed initially; they can still be claimed retroactively through a self-revision process, as long as the statute of limitations allows. Time is running, so don’t miss out on these valuable tax advantages. Contact our experts today to make the most of these opportunities!

There are various tax benefits (like family tax benefits) available in Hungary that foreign workers may not be fully aware of, yet these advantages can offer substantial financial relief to expatriate families over the years.

In today's world, pensioners are geographically mobile, so some of the luckiers can spend most of the year even in warme...
05/02/2025

In today's world, pensioners are geographically mobile, so some of the luckiers can spend most of the year even in warmer climates. However, the question may arise: in which country are their income taxed? In the following, we discuss the taxation of pensions in Hungary, especially considering that those are tax-free in Hungary.

Tax residence

The scope of the Hungarian Personal Income Tax Act covers individuals, their income and the tax liability related to this income, but it lays down different rules regarding the income of certain individuals.

A resident individual is subject to full tax liability whose tax liability covers all his income.

Non-resident individuals have a limited tax liability, as their tax liability only covers income originating in Hungary based on the place where they are earned or otherwise taxable in Hungary based on an international treaty (limited tax liability).

Tax-free pensions in Hungary, even from private fund in lump-sum: to utilize the tax favorable rules, moving to Hungary might be worth to consider

Thanks to globalization, the 2008 financial crisis and the spread of the internet, cryptocurrencies emerged as digital c...
05/02/2025

Thanks to globalization, the 2008 financial crisis and the spread of the internet, cryptocurrencies emerged as digital currencies bypassing central banks, and originally intended as mediums of exchange. However, cryptocurrencies and other crypto assets based on blockchain technology are now widely known.

Even though crypto-assets and the industry based on them are gaining ground at a rapid pace, neither the European Union nor Hungary's legislative bodies have succeeded in creating the specific legal provisions necessary for the clear accounting and tax treatment of crypto-assets. The aim of this article is to present the basic concepts related to crypto-assets, as well as the main legal, accounting and tax issues related to the taxation of companies producing, acquiring, owning and disposing of crypto-assets, as well as the relevant legislative initiatives and resolutions.

1. Introduction

Digitalization and the internet are key drivers of today's changing world.

Basic concepts related to crypto-assets, and the main legal, accounting and tax issues related to the companies dealing with crypto-assets.

Cím

Gizella út 42-44. , MOHA Ház, (MOHA Office Center)
Budapest
1143

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Hétfő 09:00 - 17:00
Kedd 09:00 - 17:00
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Péntek 09:00 - 17:00

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+3612943931

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