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Bookkeeping, Finance and Controlling

Accounting package

We offer an accounting package to our clients, which include not only the general accounting services, but monthly reporting for VAT purposes and quarterly Financial Statement for corporate tax planning.

Furthermore, our company provides the service of preparing reports on the basis of management information requirements regularly or when it is needed.

Our most popular Accounting Package includes the following services:

•  accounting based on effective accounting law
• preparation of tax returns and submission of the prepared return once it was approved by the company
  
• preparation of requested data to Statistic Authority
• preparation of payroll for one employee
• information about the connected Hungarian tax law changes in English
• preparation of issued invoices, if it is requested by the company.
• representing the company at the tax authorities during a tax audit.
• preparation of obligatory accounting and financial policies in the first year.

If you established your company recently, please find some basic information in this regard:
A legal entity established in Hungary has accounting and other several obligations based on Hungarian connected legislation. The Hungarian Government implemented a very difficult requirement system for the legal entities which is hardly understandable for professional individuals as well. To decrease the incurred mistakes the Government approved that the accounting services should be performed by a Registered Chartered Accountant at the Ministry of Finance who is trained on regular basis.

A new established company has registration obligation at the following systems:

• Registration of the legal entity at Hungarian Tax Authority;
• Registration in Hungarian Tax Authority’s electronic filling system;
• Registration in the relevant Self-Government authority;
• Registration in Hungarian Social Security system, if necessary;
• Registration at Hungarian Central Statistical Office.

Some example for ongoing obligations of a company in Hungary:

• Preparation of annual Financial Statement and Notes to the Financial statement;
• Preparation payroll on a monthly basis;
• Return for personal income tax and social security liabilities (’08 form), filling obligation on a monthly basis;
• Value Added Tax return (VAT), filing obligation either on a monthly, quarterly or annual basis;
• Return for training fund contribution, corporate income tax, cultural contribution, company car tax.

Payroll services

We also offer payroll services to our clients. The payroll services include the payroll connected documentation and reporting requirements by the Hungarian Tax Authority.

Tax services for companies

Tax planning

• We prepare study about the tax effects of a possible huge income, costs or investment in a company life. Based on the request we also prepare more scenarios in order to ease the work of decision makers.
• We send news for our clients about tax law changes and we also draw the attention to the areas where may increase the risk based on effective legislations or the current practice of the Hungarian authorities.
• Guideline request preparation from the Hungarian Tax Authority or from the Ministry of Finance. We also advise the possibility of the outcome without any negative statement.
• Planning of the assignment structure at the company with a minimum tax payment obligation.
• Review or preparation of Cafeteria system at the company based on Hungarian tax legislation. Define the most cost save methods of employee allowances for planning purposes.
• Tax review
• We offer tax review for our clients, which include reviewing of the books in aspect of the tax obligations. We also identify if any income is overtaxed or under taxed by the company.
• If you would like to reduce the risk of any tax audit prepared by the Hungarian Tax Authority, you (or your tax advisor) may review your books based on the effected tax legislation.

Social security services

• Identify of the items which may be exempted from the social security base.
• Preparation of request regarding Certificate of Coverage (i.e. A1 or E104).

Tax services for foreign individuals

Hungarian personal income tax return preparation

We prepare personal income tax returns for individuals.

Who is obliged to file personal income tax return in Hungary?

• individual who has Hungarian source employment income, dividend income, capital gain, rental income,
• individual who sold Hungarian real estate and realised any income,
• individual who rented out an Hungarian flat/house,
• individual whose employment income was born in Hungary (foreign employer recharged the incurred costs, employment income, income derived from stock option to a Hungarian entity),
• individual who spent more than 183 days in Hungary and performed his work in Hungary.

How should be start to prepare an Hungarian personal income tax return?

A. Define your residence position:

1. Define your tax residence positions in Hungary and other country you were in effected year based on the relevant domestic legislation.
2. If you are resident in more countries, you should define your resident status based on the relevant double tax treaty.
3. If you are Hungarian tax resident, they your worldwide income may be taxable in Hungary. However, if you are non-Hungarian tax resident, then you will be taxable only on your income derived from Hungarian source.

B. Collect your income certificates:

• Please collect your income certificates from the received income from Hungarian disbursers.
• Please also collect your income certificates from non-Hungarian disbursers if you are a Hungarian tax resident.

C. Preparation of your personal income tax return:

• Prepare your personal income return based on the guideline issued by the Hungarian tax authority (available only in Hungarian language).
• Please contact us if you would like to ask for our assistance.

Quarterly tax advance calculation

If you receive employment income from foreign source for Hungarian workdays and you work in Hungary more than 183 days, then you (as individual) are obliged to pay personal income tax advances on quarterly basis. For more information please contact us.

Trainings

Additionally, we are ready to hold training courses for Hungarian companies or for individuals, who have difficulties relating to accounting, payroll and tax issues.