Reducing taxes the legal way in Hungary
Tax minimization in Hungary represents the legal manner of
reducing due taxes. This is usually performed by or with the help of a
professional accountant in Hungary. Companies and individuals can request such services and use different tactics in order to
reduce the amount of taxes they pay each financial year.
Our
company registration experts in Hungary are accustomed to the laws regarding financial reporting for companies and annual filings. Together with our team of specialists you can start implementing
effective tax minimization strategies.
Strategies for minimizing taxes in Hungary
Companies and high income individuals are the ones who use tax reduction procedures most frequently. If you have the possibility, you can benefit from making more investments in one year or setting up pension schemes that can help you deduct amounts at the end of the financial year.
Prepayments represent a method of
reducing the amount of taxable income. This can be done both by small and large
companies in Hungary. Business owners can choose to pay expenses in advance or make other purchases necessary for their company. Rents, supplies or equipment can be purchased with anticipation.
Donations made in cash or in kind are another method to
deduct taxes. However, before deciding to make donations to a charitable organization,
investors in Hungary should check if that organization is registered and if those
contributions can be deductible.
The
capital gains tax discount or a trust fund can also be used as means of making some
tax reductions. Individuals in Hungary can also plan their investments for pension funds or insurance. Our
company registration agents in Hungary and our partners accountants can advise you upon the implementation of these strategies.
Taxation in Hungary for companies and individuals
Investors and
employees in Hungary need to observe the laws and regulations for taxation on the profits earned in the country. Hungary has a
corporate income tax and a
personal income tax, along with other applicable taxes.
Companies in Hungary can benefit from an extensive
double tax treaty network. If you would like to know more about
taxation for foreign companies, our experts can help you.