In 2015, taxpayers shall again take several tax changes into consideration during their business calculations in Hungary. In our present news we present the changes of the Corporate income tax (CIT) that in our opinion have the most significant impact on everyday practice for business in Hungary.
Definition of related party
From 2015 , the taxpayer and another person will be qualified as related parties , if, because of the same managing director , decisive power is exercised amongst them concerning business and financial policy.
Minimum income (profit)
In case the pre – tax profit or the calculated tax base of taxpayer does not reach the minimum income (profit), and the taxpayer does not make a declaration at his choice to the tax authority about the reasons of the incurred loss, then he shall pay corporate income tax on the basis of the minimum income (profit).
Contrary to the earlier regulations, from 2015, during the calculation of the minimum income (profit) , the total income may not be decreased by the cost of interme diated services and goods sold.
Tax losses carried forward
Any loss arising from 2015 may be used maximum in the 5 subsequent tax years. Non – used l osses that are arisen until the last day of 2014 may be used according to the rules effective at the date of their arising , but no later than 2025. In case of transformation or change of owner ship , in order that the tax losses arisen in the previous period can be used in the period following transformation or change of ownership , one condition in the cases defined by law is that the taxpayer shall carry on with the activity he pursued before the transformation or change of ownership. From 2015 , a further restriction will be that after transformation or change of ownership, the loss may be used only in the same proportion as th e proportion of the income of the carried – on activity and the 3 – year average income of the same activity prior to transfo rmation or change of ownership.