The Hungarian government has submitted draft proposals for the 2016 budget.
Two important provisions are provided for review and advance planning:
- Tax risk rating system of “risky” or “reliable” with corollary changes to tax authority deadlines and penalties.
- Changes to IFRS, from Hungarian GAAP, for 2016.
EY’s Global Tax Alert provides additional details of these proposals:
Click to access 2015G_CM5889_Hungary%20submits%20new%20proposal%20for%202016%20tax%20law%20changes%20and%20publishes%20IFRS%20transition%20timeline.pdf
The risk rating system is becoming more of a norm, versus an exception, in various jurisdictions. Accordingly, MNE’s should review its tax risk policies/framework to ensure a favorable “reliable” rating is achieved.
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