Personal Income Tax

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Personal Income Tax

The continuous changes in personal income tax and social security regulations present significant challenges for both individuals and businesses. Accurately determining tax obligations, ensuring compliance with legal requirements, and implementing optimal tax planning are essential for maintaining financial stability and minimizing risks.

Whether it concerns employee benefits, foreign employment, dividend income, or the tax implications of real estate sales, incorrect tax treatment can lead to severe financial and legal consequences. Prompt and professional responses are crucial when making tax-related decisions, as even a minor mistake due to the complexity of regulations can result in significant tax liabilities or penalties.

The tax advisory team at BDO Hungary offers up-to-date expertise and extensive experience in personal income tax and social security matters, helping clients find the most suitable tax solutions in every situation.

Our Services

  • Advisory on personal income tax and social security – ensuring compliance with regulations and exploring optimization opportunities
  • Review and restructuring recommendations for cafeteria systems
  • Tax calculation and filing for separately taxed incomes (e.g., dividends, interest income, sale of movable and immovable property)
  • Determination of income tax and social security liabilities for salaries and benefits
  • Tax advance calculations and full preparation of annual personal income tax returns, including a detailed breakdown of obligations
  • Monitoring and reviewing tax accounts – tracking payment obligations
  • Tax authority representation and administration during audits
  • Self-audit preparation – identifying correction opportunities and ensuring regulatory compliance
  • Cross-border employment advisory – cooperation with international BDO offices
  • Tax implications of stock-based compensation programs
  • Taxation of prize competitions – determining liabilities and tax burdens
  • Preparation and submission of tax ruling requests to the relevant authorities

BDO experts help minimize tax risks and ensure that our clients fully comply with all their obligations.

Do You Have Questions About Personal Income Tax?

Feel free to contact us at tax@bdo.hu, and our specialists will be happy to assist you!

Other services

Transfer Pricing

Transfer Pricing

The prices applied in transactions between related parties are referred to as transfer prices. In Hungary, since 1992, in accordance with the provisions of the Corporate Tax Act and aligned with the OECD Transfer Pricing Guidelines, the arm’s length principle must be applied when determining transfer prices. Accordingly, taxpayers that do not qualify as small businesses must prepare transfer pricing documentation for contracts and transactions with related parties by the deadline for filing the corporate tax return, provided that a performance took place during the tax year in connection with these transactions.

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Compliance

Tax Compliance Services

The continuous changes in tax regulations can present a significant challenge for both businesses and individuals. Knowing the applicable laws accurately and keeping up with regular modifications is a time-consuming task, yet it is essential to ensure compliance with tax obligations. Even a small oversight can cause inconveniences, which is why having reliable expert support is crucial.

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Tax Representation Services

Tax Representation Services

A tax authority audit can present a significant challenge for a business, as it is time-consuming, complex, and can have serious financial consequences if the taxpayer does not act appropriately. The tax authority may initiate various types of audits (compliance review, comprehensive tax audit, data reconciliation) for taxpayers. During these audits, answering the questions raised by the authority, developing a procedural strategy, communicating with the tax authority, and ensuring proper documentation are crucial, so it is advisable to seek experienced expert assistance throughout the entire process.

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Due Diligence Services

Due Diligence Services

It is crucial for the taxpayers to have a clear picture of the tax regulations and possible tax risks in case of tax audits. Furthermore, in the event of a change in the organizational structure, it is worth to supervise and reconsider the consequences from a tax perspective. In addition, it may also be necessary to get a comprehensive view of the company’s taxation in case of acquisition/sale of business.

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VAT

Value Added Tax

The value added tax (“VAT”) is often referred to as the most difficult and complex tax matter. Due to the outstandingly high Hungarian normal VAT rate of 27%, the highest rate in the European Union, VAT is considered to be one of the biggest risks for businesses. As VAT is a transaction-based tax, it is vital to receive the most accurate and professionally acceptable answer to your questions in the shortest period of time.

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expat

Expat Services

With the expansion of multinational companies, more and more employees work in multiple countries. Whether international business trips or assignments are short or long employers and expatriates are facing with cross-border taxation implications. Compliance with the domestic and foreign tax laws can be challenging and can carry significant taxation risks.

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International tax

International Tax

Due to the rapid development of international trade, in order for multinational enterprises to conduct business in a more simplified and efficient way, the need for foreign tax registration and establishment have been significantly increased. Moreover, it has become a general approach for multinationals to outsource one or more parts of their business operations to foreign countries, which also entails that the company’s business structure needs to be re-organized. Thus the taxpayer probably has many complex questions in relation to being in compliance with the regulations of the relevant foreign countries.

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Fiscal Representation

Fiscal Representation

Financial representation is essential for third-country (non-EU) enterprises that wish to operate in Hungary. To obtain a Hungarian tax number, these companies are required to appoint a financial representative in Hungary. The financial representative ensures that the enterprise complies with all Hungarian tax obligations, including adherence to invoicing regulations, maintaining records, fulfilling EKÁER obligations, submitting tax returns, paying taxes, responding to tax authority inquiries, and handling tax audits.

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Personal Income Tax

Personal Income Tax

The continuous changes in personal income tax and social security regulations present significant challenges for both individuals and businesses. Accurately determining tax obligations, ensuring compliance with legal requirements, and implementing optimal tax planning are essential for maintaining financial stability and minimizing risks.

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Corporate Income Tax

Corporate Income Tax

Corporate Income Tax is of paramount importance for companies. In order to run successful business operations, it is indispensable for companies to get familiar with and to understand the regulations relating to the income deriving from such activities.

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