Corporate income tax is one of the most significant taxes affecting businesses, with a substantial impact on profitability and strategic decision-making.
Our experts support clients in making corporate income tax-related decisions, identifying tax risks and properly managing corporate income tax obligations. Our aim is to develop practical solutions that support the secure and efficient operation of our clients' businesses in the long term.
How can we help?
Corporate Income Tax Advisory
We assist with addressing specific corporate income tax matters, analysing the tax implications of corporate transactions and assessing the tax consequences of business decisions.
Tax Calculations and Returns
We assist with determining the corporate income tax base, preparing tax calculations, compiling corporate income tax returns, and professionally reviewing existing calculations and tax returns.
Tax Incentives and Tax Reliefs
We identify available tax incentives and other tax opportunities and support their lawful application, with particular focus on incentives related to investments and research and development activities.
Review of Tax Structures
We analyse the company's operations and transactions to assess whether they comply with corporate income tax rules, and provide recommendations for reducing potential risks and optimising processes.
Tax Authority Rulings and Individual Applications
We assist with the preparation of binding ruling applications, requests for tax authority rulings and other submissions to the tax authorities, and support our clients in resolving specific tax matters.
Ongoing Professional Support
We provide expert support in interpreting changes to corporate income tax legislation, applying new requirements in practice, and resolving tax matters arising in the course of the company's operations.
Proper management of corporate income tax is not merely a matter of regulatory compliance; it is also one of the foundations of a company's long-term stability and competitiveness. Our advisors aim to provide clients with transparent, secure and commercially sound tax solutions.
Who Can Benefit from Corporate Income Tax Advisory?
Applying corporate income tax rules can be a complex task for many businesses, particularly in the case of significant investments, corporate restructurings, transactions between related parties or specific tax situations.
Hungarian Businesses
Businesses seeking to properly manage their corporate income tax obligations and make use of available tax opportunities.
Businesses Planning Investments
Companies seeking to assess the corporate income tax implications of investments, developments or other business decisions in advance.
Complex Tax Situations
Businesses for which it is particularly important to assess the tax implications of specific transactions, related-party arrangements or complex structures in advance.
Tax Optimisation Opportunities
Businesses seeking to identify tax incentives and other corporate income tax benefits that can be applied lawfully.
Research and Development (R&D) Tax Opportunities
R&D Activities and Related Tax Benefits
Research and development activities may qualify for various corporate income tax incentives and other tax opportunities. We assist in assessing whether a particular project may meet the criteria applicable to R&D activities and identify the available tax opportunities.
Our advisory services may cover the tax assessment of R&D projects, the review of related costs and documentation, and the analysis of the applicability of available tax incentives and other tax benefits.
Corporate Income Tax Advisory Step by Step
Corporate income tax matters may require several interconnected steps. Our advisors support clients throughout the process, from analysis to practical implementation, tailored to the specific circumstances of each business.
1. step
Initial Assessment
We gain an understanding of the company's operations, structure and the circumstances relevant to the specific tax matter.
2. step
Tax Analysis
We review the applicable corporate income tax rules and identify the relevant tax opportunities and risks.
3. step
Calculations and Opportunities
We perform the necessary tax calculations and assess the available incentives and tax benefits.
4. step
Documentation and Compliance
We support the proper preparation of the required documentation, tax returns and other tax compliance obligations.
5. step
Ongoing Support
We remain available to assist with subsequent questions, changes and practical corporate income tax matters.
If you would like to learn more about our Tax Compliance service related to corporate income tax, click here to see how we can support our clients with their tax compliance needs as part of this service.
Frequently Asked Questions
We have collected the questions most frequently asked in connection with corporate income taxation and related tax opportunities.
Who may be subject to corporate income tax?
+
Corporate income taxpayers include both Hungarian-resident and non-resident taxpayers. Hungarian-resident taxpayers are specifically listed by law and include, for example, business associations, cooperatives, state-owned enterprises, law firms and foundations. A foreign enterprise may also be subject to corporate income tax where it carries out business activities through a permanent establishment in Hungary or where it is a foreign member of a Hungarian company holding real estate and derives income from disposing of or withdrawing its existing interest.
Has an exit tax been introduced in Hungary?
+
Since 2020, specific rules have applied where a taxpayer carries out a transfer of assets or activities resulting in an exit from the Hungarian tax jurisdiction. Such a situation may arise, for example, where a taxpayer transfers its place of effective management abroad and consequently becomes tax resident in another country. In the tax year of the exit, the relevant taxpayers are required to increase their tax base by the amount specified in the Corporate Income Tax Act.
What is the minimum income (profit) requirement?
+
At the end of each tax year, a taxpayer must determine whether the higher of its pre-tax profit or its tax base calculated under the general rules reaches the amount of the minimum income (profit) requirement. If it does, the taxpayer determines its tax liability based on the tax base calculated under the general rules or, where the tax base is negative, carries forward the tax loss. If, however, the higher of the above amounts does not reach the minimum income (profit) requirement, the taxpayer may elect to treat the minimum income (profit) as its tax base. Where the tax base calculated under the general rules is negative, the taxpayer may also carry forward the loss in this case.
Can R&D activities qualify for tax benefits?
+
Yes. Research and development activities may qualify for several types of tax benefits and incentives. Such activities may qualify for a tax base reduction as well as a tax incentive. It is important to note that both benefits cannot be claimed simultaneously.
When should corporate income tax treatment be reviewed?
+
Regular review of corporate income tax processes may be particularly advisable where the company's operations, ownership structure, investments or business model undergo significant changes, or where new tax opportunities or legislative changes arise.
Do You Have a Corporate Income Tax Question?
Are you unsure which corporate income tax rules or tax opportunities may apply to your business? We can help identify the relevant issues, perform the necessary calculations and assess the available tax opportunities.
Contact us
