Legislation of Hungary

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Tax Exchange Information Agreement (TIEA)

Jersy
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List of state regulatory authorities

Governmental Portal
Hungarian Government
National Tax and Customs Administration
Hungarian Intellectual Property Office
Hungarian Trade Licensing Office
Hungarian Investment Promoyione Agency
National Bank of Hungary

Corporate info

Legal system
Civil law
Types of entity
Sole trader;
Unlimited partnership (Kkt.);
Limited partnership (Bt.);
Limited liability company (Kft.);
Company limited by shares (Rt.);
Association (egyesülés)
Shelf companies permitted
No
Incorporation timescale for a new company
2 days
Company suffix
Kft
Sensitive words
‘Hungarian’, ‘Budapest’ ‘national’, ‘state’, etc.
Cyrillic alphabet permitted in company name
No
Local registered office
Yes
Local registered agent
Yes
Information to be kept at the registered office
Register of shares, minutes of meetings and accounts
Seal required, type of seal
Not required
Redomiciliation (to, from) permitted
Permitted

Director and secretary

Minimum number of directors
1
Residency requirements for directors
No
Corporate directors permitted
Yes
Directors’ meetings/frequency/location
Yes / annually
Disclosure to local agent
Yes
Disclosure to public
Yes
Company secretary required
No
Residency requirements for a secretary
No
Qualified secretary required
No
Corporate secretary permitted
No

Shareholder and beneficiary

Minimum number of shareholders
1
Residency requirements for shareholders
No
Corporate shareholder permitted
Yes
Meetings/frequency/location
Yes / annually / no requirements
Disclosure to local agent
Yes
Disclosure to public
Yes
Beneficiary info disclosure to
No

Shares and share capital

Minimum authorized share capital
3 000 000
Minimum issued share capital
No requirements
Minimum paid share capital
3 000 000
Authorized capital payment deadlines
50% - before incoporation, 50% - within a year after incoporation
Issued capital payment deadlines
No requirements
Standard currency
Forint
Standard authorized share capital
3 000 000
Standard par value of shares
1 000
Shares with no par value permitted
No
Bearer shares permitted
No

Taxes

Personal tax
15%
Сorporate tax
9% + 2%
Corporate tax (in detail)
Taxable income includes a company's financial profits as adjusted by tax law. Dividends received by a Hungarian company are generally exempt from income tax, except for dividends distributed by a controlled foreign company
Capital gains tax
9%
Capital gains tax. Details
There is no separate capital gains tax in Hungary. Capital gains are included in the general tax base. Exemption applies to certain types of income
VAT
27%
VAT. Details
The standard VAT rate is 27%. Reduced rates – 18% and 5% apply to some categories of goods and services
Withholding tax
0% (dividend), 0% (interest), 0% (royalty)
Other taxes
Municipal business tax, Innovation levy, Building and land taxes, Social contributions
Exchange control
No
Government fee
Stamp duty
No

Accounts

Requirement to prepare accounts
Yes
Requirement to file accounts
Yes
Publicly accessible accounts
Yes
Requirement to file Annual Return
Yes
Publicly accessible Annual Return
No
Audit required
No

General information shortly

Location
Central Europe
Total area
93 030 sq. km
Population
9 769 526 (2020)
Capital
Budapest
National currency
Forint
Conditional reduction of currency
HUF
Against USD
366,87 (2022)
Climate, average max and min t°
Temperate; cold, cloudy, humid winters; warm summers; avg. maximum temperature (July) +25°; avg. minimum temperature (January) +4°
Time difference from Moscow
- 1 hour
Dialing code
+36
State language
Hungarian
Ethnic groups
Hungarian 92,3%, Roma 1,9%, other or unknown 5,8%
Literacy rate
99% (2019)
History
The year 1000 saw the growth of the Hungarian Kingdom with the annexation of the territories of Slovakia, Syrmia, Croatia, and Transylvania. In the 12th century the Byzantine Empire conquered a few Balkan territories. At the same time Hungary came under the pressure from the Crusades. In the 13th century the country suffered the Mongolian invasion, and between 1526 and 1699 – the Turkish Yoke, which led to the division of the territories into the Austrian and Turkish parts. In 1687 Austria forced the Turks out of Hungary. The authority of the Habsburg Family was officially recognized and they reigned until 1867. The year 1848 witnessed the Hungarian Revolution for the liberation from the Habsburgs. In 1867 Austria-Hungary was founded. In March 1919 Hungary declared itself a Hungarian Soviet Republic, which only existed until August. Then the country was proclaimed a kingdom led by the regent Miklos Horthy (1920 – 1944). During the Second World War Hungary fought on the side of the Third Reich. The Red Army overthrew the military dictatorship of Szalasi (1944 – 1945) and set in the country a communist government which was in power until 1989. Later Hungary became a parliamentary republic. In 1999 Hungary became a member of NATO, and in 2004 it joined the EU.
Credit rating
BBB
Government type
Parliamentary democracy
Executive branch
Head of the government: Prime Minister. Government: Cabinet of Ministers
Legislative branch
Unicameral National Assembly (386 members)
Judicial branch
Constitutional Court, Supreme Court, courts of appeal, courts of first instance, and local courts
Unemployment
4,1% (2020)
GDP per capita rank
46 (2020)
Corruption perceptions index rank
43 (2021)

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