New data reporting requirement in corporate income tax

This is the first time when the new data reporting requirement described in Act LXXXI of 1996 on Corporate Tax and Dividend Tax (7.§ 4^th paragraph) has to be applied. According to this obligation, the taxpayer can reduce the pre-tax profit by the bad debt of outstanding claims towards related companies (see corporate tax 7.§ (1) n) ) if he provides information about the effected related companies and the real economic reasons of the underlying transaction.

This means that if a company has debt classified as bad debt towards its related companies and it reduces the corporate income tax base with this bad debt amount, then it has to provide information on a separate statement (17TAOASZ) to NAV about the real business reasons behind the transaction, the measures made to collect the outstanding receivables, while identifying exactly the related company concerned.

Due to the upcoming deadline of the corporate income tax return it is recommended to keep in mind this obligation.

If your company needs support in connection with any of the above obligations, please do not hesitate to contact our colleagues.