A recent legislative amendment prescribes a replenishment (top-up) obligation for the innovation contribution, also for fiscal years beginning in 2012 (including taxpayers which follow annual fiscal years that differ from the calendar year). The tax declaration and payment liability for this replenishment must be met by the 20th of the last month of the fiscal year, which for taxpayers on normal fiscal years means 20 December. It is important to note that this obligation applies regardless of net sales revenue threshold, in contrast to the replenishment obligation for corporate tax and local business tax.
Environmental product charge
The new Act on the Environmental Product Charge entering into force has introduced numerous elements that were not part of the previous legislation. For example, that taxpayers subject to this charge have to assess, declare and pay environmental product charge advances – for the fourth quarter of the current year (fiscal year) – in accordance with the Act and the government decree issued to execute the Act. The product charge advance amounts to 80% of one-third of the product charge paid in the current year (fiscal year) for the first three quarters. The declaration of the product charge advance has to be made together with submitting the third-quarter return, though the actual product charge advance has to be paid by 20 December.
Notification of cash accounting for VAT
Taxpayers complying with the terms and conditions set forth in the law can opt for a cash accounting procedure when settling value added tax from 2013. Taxpayers may choose VAT cash accounting for a period until the end of the current calendar year, and for the first time for tax assessment periods starting from 1 January 2013 (if the conditions are met on a pro rata basis, this taxation method can also be selected from the day a company is recorded in the Hungarian company register). The selection must be reported to the tax authority by the last day of the previous year.
Choosing MNB exchange rate and real estate-related notifications
The end of the year is also the deadline for notifying the tax authority if a VAT payer wants to use the exchange rate published by the National Bank of Hungary to assess the forint values of taxable bases and taxes expressed in foreign currencies (the draft bill also states it will be possible to select the exchange rate of the European Central Bank as well). This choice may not be changed until the end of the calendar year following the year in which the choice was made. Similarly, 31 December is also the deadline in terms of value added tax for the otherwise tax-exempt renting and sale of real estate if the taxpayer wants to make such sales or services taxable (this choice may not be changed until the end of the fifth calendar year following the year in which the choice was made).
Companies with real estate
We would also like to point out the tax return and payment deadline coming up on 20 November: foreign members of companies with real estate are obliged to declare and pay tax if they have obtained income from the transfer of shares in companies with real estate as per the Act on Corporate Tax or from the withdrawal of shares from such company.
The professionals at HLB Klient will gladly help if you have any questions in connection with the detailed rules on complying with the above deadlines.