Starting from 1 January 2019 companies may opt for a group taxpayer status also for corporate income tax purposes. Taxpayers willing to take advantage of this opportunity from 2020 onwards should file a request with the Hungarian Tax Authority (the HTA) shortly.
The provisions regulating the group taxpayer status for corporate income tax purposes came into effect on 1 January 2019, therefore those who wanted to be member of such a tax group apply from the tax (and calendar) year 2019, should have filed the respective request between 1 and 15 January, 2019. However, this deadline was to be applied only in the first, introductory year of the new rule coming into force.
Following the introductory year, a group taxpayer status request shall be submitted to the Tax Authority between the 1st and the 20th day of the month preceding the last month of the tax year. Consequently, taxpayers whose business year aligns with calendar year and who are willing to opt for a group taxpayer status from year 2020 should file their requests between 1 and 20 November 2019. The aforementioned period is a mandatory time limit, that is failing to submit the request in a timely manner shall result in not qualifying for the status.
Should your Hungarian company or group of companies be still uncertain as to whether it would be advantageous, in their particular circumstances, to establish a group taxpayer status, or to join an existing taxpayer group comprised of their related companies, please don’t hesitate to contact our experts who will be pleased to render all necessary assistance in preparation of such an assessment.
We do hope that we could be at your service with this information. Should you have any further queries, please feel free, to contact us!