A draft version of the new law on the rules of taxation has been published and the Ministry for National Economy is awaiting constructive comments to the bill. Hungary’s tax authority, the National Tax and Customs Administration (NAV), offers a new service, enterprise mentoring, for new companies. The draft also stipulates that tax inspectors must close revisions within 365 days, and the amount of tax fine is halved.
According to the draft, the number of services provided by the NAV would increase further. Newly founded enterprises are also set to receive more assistance from the consumer-friendly tax authority, which is expected to boost the country’s competitiveness and improve entrepreneurial spirit. Mentoring is new type of personalized service provided for up to six months and recommended for every new enterprise.
The draft puts an end to tax revisions lasting for more than one year. This amendment do not affect private persons, sole proprietors and taxpayers qualified as “reliable”, as concerning these groups tax inspectors are obliged to conclude revisions within 180 days.
The Government’s campaign to cut red tape also targets taxation; several rules believed to be overcomplicated may be removed from the law. For example, enhanced regulatory supervision is to be eliminated, as this has put disproportionate burdens on affected enterprises. This kind of strict supervision has in fact become unnecessary: thanks to an ever-broader data base and effective risk analysis methods the NAV can easily spot tax evaders and tax fraudsters.
As another favourable change, the amount of fine levied in case of deliberately hiding taxable income, currently amounting to 200 percent of tax arrears revealed, is to be halved. A new rule is designed to pre-empt time-wasting appeals: in case the taxpayer refrains from appealing and pays the tax arrears revealed by a revision until the deadline, his tax fine is cut by half.
You can comment on the new law on the rules of taxation in the next three weeks.
(Ministry for National Economy)
