The modifications adopted earlier today will ease regulation and simplify processes for tax-paying enterprises and private persons alike, Minister of State and Government Commissioner András Tállai said, following the adoption of the package.
As a major change concerning the personal income tax, as of 2016 the National Tax and Customs Administration (NAV) will prepare the tax returns of 1.5 million taxpayers, and as of 2017 it will do so for every Hungarian private person.
With regard to enterprises, the authority introduces the terms “reliable, average and high risk” taxpayer. Those in the reliable category will be eligible to some incentives, while being a high-risk taxpayer will have some drawbacks designed to encourage them to advance at least to the average category, András Tállai said.
Tax registration is set to become stricter: those who quit a company only to found a new one and leave behind massive tax arrears will face impediments.
The taxation of environmentally friendly cars will be more favourable, as these will be exempt of paying car registration tax and fee, vehicle tax and corporate car tax.
A new tax break is to be introduced for road hauliers who can deduct 7.5 percent of motorway tolls paid in the country or abroad from the local business tax and they will be exempted from paying duty on purchased vehicles.
The amount of accident tax paid by customers of bankrupt Astra insurance company will be refunded by the NAV, to some 180 thousand people.
The Minister of State added that as of 1 January 2016 tax and customs accounts will be merged into one account.
The home distillation of pálinka will still be permitted, but a tax stamp of HUF 700 per litre is to be purchased, of which minimum five, maximum 86 will be made avaialable for a distiller.
As another key change, without proper proof allegations of wrongdoing cannot be a sufficient tool for estimating tax arrears by NAV.
Within corporate taxation, the Government plans to add some incentives to the tax break for high-growth enterprises and a new version of the employee stock ownership programme.
(Ministry for National Economy)
