2017 TAX PACKAGE APPROVED

The Hungarian Parliament approved the new tax regulations for 2017. The key changes in the Act on the Rules of Taxation are, among others, certain changes in the classification of reliable and risky taxpayers, the provisions on the suspension and cancellation of the tax number and modifications relating to EKAER (Electronic Public Road Trade Control System).

Reduced VAT rates will be applicable for several products and services, such as poultry, eggs, milk, restaurant services and internet services. Furthermore, the excise tax on fuel shall be conditional to the world market price of oil. Other important change is that as of 1 January 2017, the cafeteria system will be significantly modified. Finally, the so-called “Hungarian Google Tax” has been introduced, which serves as an extraordinary levy on “multinational internet-based companies”. As a result, advertisement publishers who fail to issue ‘ad tax declarations’ in dealings with their customers and who are not listed in the tax authority’s public register will be obliged to issue their declaration directly to the tax authority.