Hungariantax policy inthelight of EU and internationaldevelopments Pankucsi ZoltánDeputy State Secretary
Key featuresof Hungariantaxsystem • Reducedtaxburdenon labor • Lowcapitaltaxation • Increasedtaxesonconsumption and harmfulexternalities • Additionaltaxesonsectorswith extra profit • Taxbasebroadening • Improvingtaxcollectionefficiency
Taxationtrendsin Hungary • More employment-friendly taxation of labour • addressingyouth unemployment and • encouragingwomen's participation • Creatingattractive business environment • lump sum tax for small taxpayers (KATA) • Smallbusiness tax (KIVA) • Free entrepreneurial zones • Fightingagainstshadoweconomy, improvingtax compliance • Electronic connection of cash registers to the tax authority • Reverse charge VAT in agriculture
Taxationtrendsinthe EU • Simlification oftax systemsand improvingefficiency • Shift fromdirecttaxationtowardsindirect, greenorpropertytaxes • Fightagainsttaxfraud • Enhancedcooperationamongtaxauthorities • Modification of theSavingsDirective and theDirectiveonAdiminstrativeCooperation • Indirecttaxation • Broadening VAT base • More effectiveimplementation, fightingtaxfraud • Directtaxation • Individualtaxation – adressingyouthunemployment • Business taxation– Financial TransactionTax, CommonConsolidatedCorporateTaxBase, Codeof Conduct, JointTransferPricingForum
Hungarianposition • Yestosimplification, raisingeffectiveness, administrativecooperation, fightagainsttaxfraud • No toharmonization and givingupsovereignty • VAT: simplification, quickreactiontofraud • Corporatetaxation: Code of Conduct, JointTransferPricing Forum, • CCCTB is notsupported • FTT: Hungary is „quasiobserver” • Automaticinformationexchange: supported
Fightagainsttaxfraud Hot topicinthe EU and ontheglobalscale • OECD BaseErosion and Profit Shifting Project- BEPS • EU Tax Platform • New global standard ininformationexchange • G5 initiativeonautomaticinformationexchange • ET-OECD ConventiononMutualAdministrativeAssistance • ForeignAccount TaxComplianceAct - FATCA
Hungary intheglobaltaxsystem • 73 DTAs in effect and severalare under negotiation; • First country to sign the FATCA Agreement with the US in the region; • Active cooperation with thirdcountries; • Supporting the fight against tax evasion whilekeeping tax sovereignty.