Tax supplement liabilities

In this newsletter we would like to inform you that by 20^th December taxpayers with a tax year which equals with the calendar year have to supplement the

• advance corporate tax
• advance innovation contribution
• advance local business tax

up to the amount of the expected annual tax liabilities. The relating declaration and payment obligations must be fulfilled by the above deadline to the tax authority or to the local municipalities.

Taxpayers are exempted from the duty to supplement the advance corporate tax and the advance local business tax in the following cases:

- if their annual sales income in the tax year preceding the current tax year did not exceed MHUF 100;

- upon termination;

- if the returns are filed on account of the completion of the company registration procedure (e.g. a pre-company period);

      - non-profit companies, foundations, and public trusts

We also would like to draw attention that all taxpayers, who are subject to innovation contribution are obliged to supplement this type of tax! From the innovation contribution supplementation taxpayers cannot be exempted, not even those, who could be exempted from the duty to supplement the advance corporate tax and the advance local business tax (for example based on previous year’s sales revenue figures).

It should also be noted that those who are obliged for supplement are also have to submit their tax return if it has zero data.

It is worth noting that if the supplementation of the advance tax is not paid to the Tax Authority by 20^th December, the Tax Authority can be expected to impose a default fine at a rate of 20% of the tax shortfall, which is the difference between the actually paid tax advances and 90% of the actual year’s final tax liability.

We also would like to draw the attention to the options that are available already at the calculation of tax supplement, and are advised to be considered, such as allocation of taxes, about that you can find more information in pour previous newsletters: (LINK)

If we can be at your service regarding the calculation of tax supplement, or you are interested in any tax allowances or tax liability reducing opportunities, our tax expert team is gladly at your disposal.