International tax solutions in Hungary
Understanding the complexities of international tax is essential for businesses that operate globally. In Hungary, it is important to have a thorough grasp of local laws and international tax treaties in order to manage cross-border tax responsibilities effectively. Our strategy aims to empower businesses to navigate these challenges with confidence, ensuring they comply with regulations while optimizing their international tax plans. We emphasize precision and strategic insight, allowing companies to fulfill their tax obligations successfully while capitalizing on opportunities for tax efficiency across different jurisdictions.
International tax rate
Hungary’s tax system features a relatively low corporate income tax rate along with a flat rate for personal income tax. Non-residents are taxed based on a territorial system, meaning they pay taxes solely on income earned within the country. In contrast, residents are taxed on their global income. There are various exemptions and withholding taxes applicable. The Corporate Income Tax is levied at a rate of 9%. Companies face a capital gains tax of 9%, while individuals are taxed at 15%. The standard Value Added Tax (VAT) rate is 27%. Companies pay a 0% tax on dividends, whereas individuals incur a tax rate of 15%.
Our international tax services
We provide a complete range of international tax services aimed at helping businesses navigate the intricacies of cross-border taxation in Hungary. Our objective is to guarantee full compliance while improving your global tax standing, enabling you to concentrate on growing your international activities. Our offerings consist of:
Cross-border tax compliance
Our cross-border tax compliance services guarantee that your international tax submissions are precise and punctual, aligning with the tax regulations of both Hungary and other countries. We assist you in navigating the process of fulfilling reporting obligations, adhering to documentation standards, and meeting filing deadlines across various jurisdictions. This service minimizes the likelihood of penalties and keeps your business consistently compliant with global tax laws.
Transfer pricing advisory
We offer specialized Transfer Pricing Advisory services to assist your business in developing and documenting pricing strategies for transactions between affiliated entities across various countries. Our team helps create transfer pricing policies that adhere to Hungary’s regulations and OECD guidelines, reducing the likelihood of disputes and penalties. Additionally, we perform benchmarking studies and create transfer pricing documentation to validate your pricing arrangements, ensuring compliance with both local and international standards.
International tax planning
Our services in international tax planning concentrate on creating strategies to enhance your global tax situation. We collaborate closely with you to recognize and leverage tax treaties, credits, deductions, and exemptions that can lower your total tax liability. Additionally, we offer advice on organizing your international operations to mitigate risks related to permanent establishment and other international tax issues, making sure your global tax approach complements your larger business goals.
Tax treaty analysis and optimization
We provide expert analysis and optimization services focused on tax treaties to help you maximize the benefits of Hungary’s double taxation agreements (DTAs). Our team examines the relevant treaties to pinpoint opportunities for minimizing withholding taxes, preventing double taxation, and capitalizing on treaty advantages. This service is especially beneficial for companies involved in international investments, financing, and supply chain operations.
Foreign tax credit management
Our foreign tax credit management services help companies maximize the benefits of foreign tax credits to prevent double taxation on income generated overseas. We offer assistance in claiming credits for taxes paid in different regions, making sure your business fully utilizes these credits while adhering to Hungarian tax regulations. This approach contributes to lowering your total global tax burden and enhancing your cash flow.
International tax system
Grasping the intricacies of the international tax framework as it pertains to Hungary is crucial for companies doing business internationally. Our knowledge offers you a thorough insight into the regulations surrounding international taxation, including the effects of worldwide tax reforms like the OECD’s BEPS initiatives. We assist you in managing the complexities of global tax compliance while offering strategic advice to improve your international tax efficiency.
Contact us
If you would like to find out more about our international tax services or talk about how we can help your business navigate cross-border tax issues, please get in touch with us.
Disclaimer
Tax laws and regulations are frequently evolving and can differ depending on personal situations. The information presented here is intended for general guidance and may not represent the latest updates. It is strongly advised to seek the assistance of a qualified tax professional for specific and current advice tailored to your needs.