As in previous years, some companies will be required to fulfill corporation and local trade tax, the key points of which are as follows:

Corporation tax  (19% ill. 10%):

Who is obliged to fulfill it?

Domestic and foreign entrepreneurs who use double-entry bookkeeping – if their annual income exceeded 100 million HUF in the fiscal year preceding the relevant year – shall pay the advance for corporation tax up to the expected tax amount for the fiscal period until 20th of the last month of the calendar or business year. So taxpayers whose income was less than 100 million HUF in the previous fiscal year are not subject to fulfillment.

Local trade tax (2%):

Who is obliged to fulfill it?

Domestic and foreign entrepreneurs who use double-entry bookkeeping and are required to pay corporation tax advance as described at corporation tax – shall pay the advance for local trade tax up to the expected tax amount for the fiscal period until 20th of the last month of the calendar or business year.
The taxpayers who are not subject to pay corporate tax advance shall not pay local trade tax advance either.

In respect of both types of tax:

What is the deadline for tax returns and payments?

The deadline for tax returns and payments is December 20, 2013.
Pursuant to the law, the tax is deemed to be paid the date on which the account of the taxpayer has been debited by the financial institution (so it is not enough just to submit the transfer order). In case of a transfer from another type of tax, provided that there is enough collateral, the payment date is deemed to be the date of filing of this application.

What are the consequences of inadequate fulfillment?

The Act on the Rules of Taxation requires paying default penalty in case the advance tax is not or inadequately fulfilled. The amount paid shall be equal to the expected annual tax liability; however, default penalty can be imposed only if the payment is less than 90 percent. The expected amount of tax shall be estimated by the taxpayer based on the available data.

The rate of default penalty can take up to 20% of the difference between tha advance paid and 90% of the tax. It is important to know that there is no upper limit for the mount of penalty, it is only limited in 20% of the penalty base and even is the penalty is of low value, it is still imposed by the Tax Office.