We would like to inform you about the changes in the tax top-up obligations as at
20 December 2019.
Due to amendments in tax laws the top-up of corporate income tax and innovation contribution by 20th December is no longer obligatory, however it is still optional for year 2019 already.
Opting in for the voluntary corporate tax top-up may be favorable for those entities, which intend to assign part of their corporate income tax top-up liability for a motion picture production or a popular team sport, as in this case the tax rebate received would be higher.
The top-up obligation for local business tax remained in place.
Under the effective rules, the local business tax (and upon decision, the corporate income tax and innovation contribution) top-up obligation will only apply to taxpayers whose annual sales revenues exceeded HUF 100 million in the tax year preceding the tax year under review.
Should your company opt for voluntary top-up for corporate income tax and innovation contribution for 2019, please inform us on such decision as soon as possible, but not later than 10 December 2019. In this case we would need further information regarding the calculation of top-up liability.