ARCHIVES

The EU tightens: Is this the end of greenwashing?

On 17 January 2024, the European Parliament formally endorsed its provisional agreement with the Council on the Greenwashing Directive, which intends to create a harmonized set of rules on sustainability claims applicable to all companies operating in the EU/EEA by amending certain key provisions of the Unfair Commercial Practices Directive. It aims to contribute to the EU’s green transition by empowering consumers to make informed purchases using reliable sustainability information about products and traders.

2024-02-28

A proposal made by the Government for preferential taxation of "digital" companies employing foreign workers

According to a draft legislation on digital companies issued at the end of 2023, “digital companies” would be exempt from paying public burdens and local business tax. Employees in employment relationships and the executives of companies could fulfil their tax payment obligations after their income through special public burden contributions.

2024-02-27

Platform workers are not employees, Hungarian Curia confirms

The legal status of platform workers (e.g. food couriers) is continuously subject to interpretation and often times scrutiny from the authorities. The Hungarian Curia settled the status in its latest decision, at least from a labour law point of view.

2024-02-26

Stronger EU anti-money laundering package

In the middle of January 2024, the European Council and Parliament reached a provisional agreement on parts of an anti-money laundering package aimed at protecting EU citizens and the EU financial system against money laundering and terrorist financing. As a result of the rules, national systems to fight money laundering and terrorist financing will become more organised and cooperation between these systems will improve. With the new package, all the rules for the private sector will be transferred to a new regulation, and the institutional arrangements for combating money laundering and terrorist financing will be organised at national level and in the Member States under a directive.

2024-02-22

New rules to boost cybersecurity in EU entities

On 22 March 2022, the Commission proposed new rules to establish common cybersecurity and information security measures across the EU institutions, bodies, offices and agencies. The political agreement was reached between the European Parliament and the Council on the regulation proposed by the Commission on 26 June 2023 and the new regulation entered into force on 7 January 2024.

2024-02-20

Green Light for Wind Power Projects in Hungary

In December 2023, the Hungarian Government significantly eased the regulatory conditions for the establishment of wind turbine projects in Hungary in order to comply with EU requirements and enhance the utilization of green energy.

2024-02-14

Employment administration speeds up, employment certificate is introduced

We are witnessing an important advancement in the field of employment administration in Hungary. Starting from 1 January 2024, the Act on the Promotion of Employment and Unemployment Benefits was amended, introducing the obligation for employers to issue an employment certificate following the termination of employment. The amendment needed to to ensure that employees do not receive six different documents when their employment relationship is terminated, but only one single document containing all the necessary information, either in electronic form or on paper.

2024-02-12

Pre-emption right for the Hungarian State in case of solar power investments

As of 13 January 2024, a new government decree amends the provisions of the clearance procedure of the Government Decree on certain foreign direct investments (“FDI”). The amendment grants the Hungarian State a right of first refusal in respect of acquisitions of strategic companies whose main or additional registered activity is electricity production and pursue solar power plant-related activity that are to be acquired by foreign investors.

2024-02-09

E-VAT system goes online in Hungary

The digitalisation of the Hungarian tax system has reached another important milestone: after lengthy preparatory work (and a few setbacks), the e-VAT system was launched on 1 January 2024, on a voluntary basis, for now.

2024-02-07

Notable Changes Hungarian Corporate Law Regulations Effective from 1 January 2024

In Hungary, a legal entity can separate into multiple legal entities through division or spin-off. In the case of a spin-off, the original legal entity continues to exist, and a portion of its assets is transferred to the newly formed legal entity as its successor. The legislator supplemented this regulation with the institution of the internal spin-off, stating that "internal spin-off can also occur in a way that the separating legal entity remains, and with a portion of its assets, it creates the successor legal entity, of which it becomes the sole shareholder."

2024-02-05

New Act on the entry and residence of third-country nationals in Hungary

The Hungarian Parliament adopted a new act on the rules of the entry and residence of third-country nationals on 12 December 2023. The new provisions tighten and clarify the legal titles and conditions of residence and employment of foreign nationals in Hungary. The new act fully replaces the provisions on the entry and residence of third-country nationals in Hungary. Most of the provisions will be applicable from 1 March 2024, however, the rules on guest investors will enter into force only from 1 July 2024. There is also a transitional period between 1 January and 29 February 2024, during which it is not possible to submit any application for residence permit to the Immigration Authority.

2024-02-01