The rights and duties of taxpayers and tax authorities as well as related procedures are contained in the Taxation Rules Act.
Assessing and levying taxes
Taxes can be assessed, levied and paid in various ways:
- Taxpayer: Businesses and other organisations ascertain their tax and budgetary supports by self-assessment; in other words they ascertain, declare and pay their tax themselves, or claim budgetary supports. A private individual may only use this method if he is an entrepreneur or pays value-added tax, and if his personal income tax has not been determined by his employer or by the tax authority.
- Agents or employers: Are obliged to assess taxes and advance payment on taxes for individuals by means of deductions, if so required by law.
- Entity required to collect taxes: In the cases defined in law, an entity required to collect taxes notifies the private individual about the amount of local tax and receives the tax (tourist tax).
- Tax Authority: determines taxes by levying or imposing taxes, assessing tax as the tax authority on the basis of a simplified tax return, or by conducting ex post tax assessments.
The Ministry of National Economy (HITA) issused a report in 2012 on the current status of taxation in Hungary and the changes of the recent period.
This site contains information made by the specialists of the National Tax and Customs Administration.
In general, all taxpayers must first register, whereupon the tax authority registers the taxpayer and issues a tax identification number.
Tax obligations include:
- Reporting and declarations;
- Opening a current account;
- Tax returns;
- Issuing and storing accounting documents (e.g. invoices and other accounting documents);
- Tax assessment;
- Deduction and collection of tax;
- The possible payment of tax advances and data supply;
- Actual payment of tax.
Assessed taxes are declared using the appropriate forms.
Electronic tax returns
Businesses must file tax and national insurance returns and provide tax-related data electronically.
In addition to this, every taxpayer has the opportunity to handle tax affairs electronically. Taxpayers may therefore fulfil beyond their filing and data supply obligations also their reporting obligation and obligation to record any changes electronically. In addition to this, every taxpayer has the opportunity to view his own tax account, and to download the recorded data.
All this is done via the Client Gateway on the Government Portal.
Electronic customs declaration
The Electronic Customs Portal (eVP) provides an opportunity for documents submitted in connection with tax returns, rebates and other provision of information to be viewed or approved, if this is necessary owing to joint representation of the taxpayer (company), and for the administration of joint approval rights and access to other services.
Client Gateway registration
The Client Gateway is an access point through which taxpayers can safely connect to public administration bodies and public institutions using personal identification. It is necessary to register in order to create a personal client gateway.
Registration may be done by the taxpayer himself, that is to say a legal person, or, in the case of a company without legal personality, by its representative.
The registration can be performed in any notary's office, government client office, tax authority client office or the foreign representation of Hungary. If the taxpayer has an appropriate electronic signature, he may also register on-line and need not visit the office of records.
1% of personal income tax
Since the 1996 tax year, the 1% law (Act CXXVI of 1996) has let private individuals offer 1% of their personal income tax to a civil organisation, and another 1% to a church or key state appropriation.
Issue "Doing Business in Hungary 2012" published by the Hungarian Investment and Trade Agency offers useful information on the Hungarian taxation system in English to foreigners: