Tax Representation

In contrast with dealings relating to civil law, taxpayers and tax authorities may not freely establish their relationship and procedures according to their own individual purposes and determination, as the laws applicable to taxation accurately define the rights and obligations of both taxpayers and authorities during taxation proceedings. Through establishing the specific legal framework for taxation, these regulations ensure maintenance of the fundamental and necessary principles of legal certainty and the rule of law.

The main focus of tax legislation is primarily placed on prescribing the obligations of the taxpayer, which include tax registration, the filing of formal statements, tax assessment, the filing of tax returns, the payment of taxes, the issuing and retention of accounting documents, bookkeeping, the disclosure of information required by authorities, the deduction and collection of taxes, as well as opening and maintaining at least one payment account.

In addition to being fully aware of their prescribed obligations, taxpayers should also be well informed about their legal rights and possible opportunities for action during official taxation proceedings in order to be able to pursue their own legitimate interests in the best possible way under the applicable law.

The Fundamental Law of Hungary provides guarantees for the decency and integrity of official proceedings by clearly specifying that everyone has the right to have his or her affairs handled by the authorities within a reasonable time in an impartial and fair way; furthermore, the fundamental law prescribes that the authorities must always give the proper legal grounds for their decisions. [Article XXIV of the Fundamental Law of Hungary]

The laws applicable to taxation also determine uniform protocols and procedures to be followed by the authorities and accurately define the limits of their margin for manoeuvre. These regulations also impose binding obligations and mandatory actions to be performed by the authorities in particular cases and may even restrict the use of discretionary powers of judgement to a certain extent.

Determining Taxpayer Obligations

In order to be able to precisely determine the prescribed tax obligations to be fulfilled by the taxpayer, an accurate knowledge of relevant legislation is required, as well as the attentive monitoring of amendments, repeals and new legislative acts entering into force must be performed on an ongoing basis.

In addition to assessing the amount of taxes to be paid for a given tax period, the obligation to prepare and submit tax returns, and the payment of taxes must also be performed in accordance with relevant laws and regulations applicable to the taxpayer. Further obligations must also be fulfilled within the requisite time limit and according to the precise manner prescribed by legislation, e.g. filing notifications and formal statements, disclosing data required by authorities, issuing and retaining accounting documents, keeping proper records of business transactions, deducting and collecting taxes, and opening a payment account.

The regular fulfilment of obligations to file tax returns, formal notifications, and data disclosures, performed within the prescribed time limits, provides the basis for successful administration of tax responsibilities and also facilitates the establishment and maintenance of orderly and favourable relations with the authorities based on diligent compliance and long-term co-operation.

Maintaining Records and Registers

The various laws applicable to taxation require that taxpayers maintain a proper set of records in order to provide all the information and data necessary for the accurate fulfilment of taxpayer obligations and also to substantiate the legality and lawfulness of the performed calculations and actions.

In addition to continuously recording the business transactions occurring during the operation of business associations, the maintenance of several other registers is mandatory not only for entities falling under the scope of the law on accounting or any other laws regulating the preferential forms of taxation, but in certain cases also for private individuals as specified in the scheme of income taxation.

Besides the general record keeping obligation imposed on all economic entities, there are also special registers to be maintained by various selected groups of taxpayers and there are some other registers which should be maintained upon meeting certain conditions set out in the regulations.

Preparing and Filing Tax Returns

Taxpayers have the obligation to file tax returns by using the standard forms prescribed for this purpose in order to declare the amount of taxes determined by self-assessment. These forms are provided by the tax authorities and contain all the information necessary for identifying the taxpayer, determining the tax base, exemptions and allowances, the amount of tax, and also the base and the amount of central subsidies.

The payment of taxes does not exempt the taxpayer from the obligation to file tax return forms and a significant penalty is to be paid when the submission is performed beyond the prescribed time limit, or the information supplied in the form is incorrect, false, or incomplete, and also in the case of non-compliance.

Tax arrears which are tax differences established to the debit of the taxpayer during an audit are also sanctioned by severe tax penalties of at least 50 per cent of the tax arrears and an additional penalty for late payment is also imposed at the rate which is double the prevailing central bank base rate.

The majority of taxpayers are obliged to file all tax return forms and declarations to the Hungarian tax authority electronically and those taxpayers who are not required to supply data electronically may also decide to use electronic forms for this purpose. The submission of the forms may also be performed by a permanent proxy, which requires that a prior registration is submitted to the tax authority in paper form.

Tax returns and statements may also be endorsed by a tax advisor, tax expert or certified tax expert and in this case when an endorsed tax return or statement contains an error, the ensuing default penalties will be imposed on the tax consultant, tax expert or certified tax expert concerned.

Accurate and Timely Tax Payments

taxpayers may organise their affairs so as to pay the least tax possible under the law

Szolgáltatásaink igénybevételével nemcsak jelentős időt és költségeket takaríthat meg, hanem nagymértékben javulhat a működés átláthatósága is, amely mind az ellenőrző szervek és más hatóságok előtti megjelenés, mind a befektetői bizalom megtartása szempontjából egyaránt előnyös lehet.

Megbízóink egyedi igényei szerint kialakított szolgáltatásokat kínálunk adózás (adóügyvitel, adótanácsadás, adóképvisele), könyvelés (számviteli szolgáltatások, beszámolók összeállítása, jelentések készítése), bérszámfejtés (munkaügyi adminisztráció és ügyintézés), szakfordítás és tolmácsolás, valamint üzleti tanácsadás területén. Az alapszolgáltatásokon kívül különleges szakismereteket igénylő területeken is az ügyfelek rendelkezésére állunk a gazdasági-pénzügyi tervezés, az információszolgáltatás, a jogszabályi előírásoknak való megfelelés támogatása és a hatékony hivatali ügyintézés biztosítása érdekében.

A minőség iránti elkötelezettségünk mellett szakszerű és gördülékeny szolgáltatásokat kínálunk működő vállalatok, kis- és középvállalkozások, intézmények, civil szervezetek és társasházi közösségek, továbbá hazai és külföldi illetőségű magánszemélyek részére, valamint a kisebb mikrovállalkozások, induló vállalkozások és egyéni vállalkozók számára optimális és költséghatékony megoldásokat nyújtunk saját igényeik részletes figyelembevételével.

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