text:
Tax and financial due diligence
Audit of company transformations
Audit of grants
Accounting and payroll accounting
VAT Registration in Hungary
Supporting SSC
How we work with our Clients
Our quality assurance report
Our MGI WORLDWIDE membership
Client identification obligation in Hungary
Home » News » Changes to the Hungarian Accounting Act Expected in 2023
Changes to the Hungarian Accounting Act Expected in 2023
November 3, 2022 | Author: Andrea Vizmati
Examining the threshold for the preparation of abbreviated annual financial statements for a company created by separation
If the data for the two financial years preceding the financial year concerned are unknown or incomplete, the projected data for the year concerned and, where applicable, the annual data for the preceding financial year should be taken into consideration for the balance sheet total, annual net sales revenue and average number of employees of the company established by a separation.
The projected data for the year concerned should also be taken into consideration when determining the audit requirement for a company established by a separation if the data for the previous two financial years are unknown or incomplete.
Participating interest in health, social, cultural, and educational institutions
A participating interest in a health, social, cultural, and educational institution should be recognized as other long-term participating interest if it does not meet the definition of equity securities in the Hungarian Accounting Act. For the determination of cost, the same rules described in the Accounting Act apply as for equity securities in an economic entity. The value of participating interest may also be shown in the balance sheet at the value of the equity shown in the balance sheet of the last annual financial statements of the institution concerned.
Financial leasing obligation
For financial leases, the amount recognized as other long-term liabilities shall not include the repayments due in the following year.
Derogation from the Hungarian Accounting Act when preparing abbreviated annual financial statements
An economic entity that prepares abbreviated annual financial statements may depart from the requirements of the Hungarian Accounting Act to present a true and fair view, but in this case the economic entity shall disclose the derogations and the reasons for them in the supplementary notes.
These changes will first apply to the financial statements for the financial year beginning in 2023 but may also be applied to the financial statements for the financial year 2022.
The economic entity that prepares its annual financial statements and consolidated financial statements in accordance with IFRS, shall also apply the requirements for reporting amounts paid to governments.
To comply with Directive 2021/2101 of the European Parliament and of the Council, a new chapter will be added to the Hungarian Accounting Act, a report on corporate income tax (CIT Report), the provisions of which will also apply to the above entities.
CIT Report
The ultimate parent entity shall prepare such a CIT report if, for two consecutive financial years, its consolidated annual revenue exceeds HUF 275,000 million at the balance sheet date. A stand-alone company not included in a consolidation is also required to prepare a CIT report if its reported annual revenue exceeds the above threshold. Companies that are exclusively established or have a permanent place of business or a permanent business activity in Hungary and report in accordance with Directive 2013/36/EU of the European Parliament and of the Council are exempt from this reporting obligation. If the parent company is not subject to the law of an EU Member State, the subsidiary or branch shall prepare the CIT report if the revenue reported in the consolidated financial statements for two consecutive years reaches the threshold set by law.
The report should present all information relating to the activities, including those of all related companies included in the consolidation. The report shall be drawn up on a standard form and machine-readable electronic reporting format and shall be filed and published at the same time as the annual financial statements.
The auditor's report shall include a statement as to whether the company was required to prepare and publish a CIT report and if so, whether it was done in accordance with the law.
The new reporting requirements will apply for the first time for the financial year starting on or after 22 June 2024.
Tags: Corporate income tax (CIT), Financial statement, Hungarian Accounting Act
László Killik
Szilvia Sarkadi-Nagy
The possibilities of employing Hungarian citizens abroad 2023. February 3.
Changes to Transfer Pricing Rules in 2023 2023. January 30.
Short Summary of the 2023 Tax Law Changes 2022. December 1.
VAT Changes Expected in 2023 2022. November 3.
Changes to the Hungarian Accounting Act Expected in 2023 2022. November 3.
All years201220132014201520162017201820192020202120222023
All tagsaccountingAdvertising taxaffiliated companiesbusinessbusiness taxcompany car taxCorporate income tax (CIT)corporate taxemploymentFinancial statementfixed-rate tax of low tax-bracket enterprisesForeign currency invoicesHungarian Accounting ActLocal business taxlocal taxesotherpersonal income taxrescheduled working dayssmall business taxsocial contribution taxtax lawTransfer pricingvat
accounting Advertising tax affiliated companies business business tax company car tax Corporate income tax (CIT) corporate tax employment Financial statement fixed-rate tax of low tax-bracket enterprises Foreign currency invoices Hungarian Accounting Act Local business tax local taxes other personal income tax rescheduled working days small business tax social contribution tax tax law Transfer pricing vat
Whatever question you may have, we will do our best to answer it within one working day.
By completing this form, you acknowledge that you have read our privacy statement and consent to the use of your data.
Information on the processing of personal data
MGI Worldwide is a leading international network of separate and independent accounting, legal and consulting firms that are licensed to use "MGI" or "member of MGI Worldwide" in connection with the provision of professional services to their clients. MGI Worldwide is the brand name referring to a group of members of MGI-CPAAI, a company limited by guarantee and registered in the Isle of Man with registration number 013238V, who choose to associate as a network as defined in IFAC (IESBA) and EU rules. MGI Worldwide itself is a non-practising entity and does not provide professional services to clients. Services are provided by the member firms of MGI Worldwide. MGI Worldwide and its member firms are not agents of, and do not obligate, one another and are not liable for one another's acts or omissions.


J. N. F. Gistel is the author of the original taxon.
The type species is Lamia asphodeli Latreille, 1804.
Agapanthia (Epoptes) Gistel, 1857 is the full name of the group-subgenus in the taxonomic classification system.
Agapanthia (Epoptes) has 40 species. The subgenus is a subdivision of Agapanthia, genus ranked in the Agapanthiini tribe of Lamiinae.


Not sure to get to for Mother's Day this year? Skip the store and go homemade. This simple DIY project will add some fun to your mom's garden and definitely make her day. Read on to see what supplies you need and find out how you can make these sweet spoons at home.
Step 1: Paint your spoons to approximately midway down the handle so they'll stand out in the garden.
Step 2: Wait for them to dry, then write the name of each vegetable or flower your mom is growing on each spoon. You can also draw the vegetable or plant, to add some rustic charm.
Step 3: Wrap with a ribbon or some burlap and surprise Mom on her special day.
We hope this cute craft helps make your Mother's Day extra special. For more DIY projects, be sure to connect with us on Facebook, Instagram, and Twitter.