NEW TAX PROCEDURAL REGULATIONS FROM 2018

New tax procedural rules will replace the current regulations from 2018. The new regime will include a new act on the rules of taxation, an act on the order of the tax administration and a separate act on the tax enforcement. In the new system the act on tax administration containing general rules will serve as the background for the other two acts, and the new Hungarian General Administrative Procedural Act will not be applicable in tax procedures.

The bills include several novelties and aim at creating a picture of a more ‘friendly’ tax authority. For example, the bill on the tax administration introduces a new mentoring system by the tax authority for start-ups providing professional support up to a half financial year. An important new rule will be that the tax audit launched by the tax authority shall not exceed 365 days.

The new act on tax enforcement will be applicable in the enforcement procedure of tax payment obligations determined and registered by the central or the local tax authorities. It contains furthermore a few forward-looking provisions, such as the electronic communication between the parties in the case of enforcement launched by the tax authority. Another change is that the tax authority will not be obliged to pass a separate resolution to launch the enforcement procedure in the matter, or to turn to the court, and will not need to advance the costs of the bailiff either.

The majority of the new provisions are expected to enter into force on 1 January 2018.