Hungary

Hungary

Hungary’s parliament has passed an autumn tax package introducing significant changes to tax and compliance rules. The package gives tax authorities 60 days to review companies’ transfer pricing documentation, with extra time allowed for completing unilateral advance pricing agreements. Transfer pricing rules ensure transactions between related entities are priced as if they occurred between independent parties, preventing profit shifting to low-tax jurisdictions. The legislation also amends Hungary’s global minimum tax rules, requiring large multinational companies to pay at least 15% on global incomes, aligning with OECD guidelines. Additionally, a special per-passenger airline tax will be repealed from January 1, 2025, while retail sales tax will extend to online marketplaces. The package, passed by 114 votes to 42 with 8 abstentions, now awaits final approval from the speaker and president before becoming law.