Tax amnesty: subsequent announcement of share acquisitions

In 2024, Hungarian companies have a unique opportunity to make up for previously unreported share acquisitions before the statutory deadline of May 31, 2024. The tax amnesty allows these companies to be exempted from paying corporate income tax on shares that they had previously failed to report.

Why it’s important to act immediately

If a company decides to take advantage of this opportunity for subsequent announcement, they can now meet their tax liabilities at a reduced rate, and the future sales of these business shares may be exempt from CIT. This requires the involvement of an independent expert to determine the market value as at December 31, 2023, the shares they wish to report. A one-time, reduced corporate tax liability arises on 20% of the difference between the determined market value and the book value, which must be settled by deadline for the 2023 CIT return.

Who should take advantage of this opportunity

This announcement is particularly beneficial for companies where the market value of the acquired shares significantly exceeds their book value, or where a significant increase in market value is expected in the future. They need to pay the reduced tax liability based on the market value determined by an independent expert, which must be settled by the 2023 CIT return.

Attention, the deadline is final

It’s critically important that companies take advantage of this opportunity by May 31, 2024, as the deadline is final. Those who fail to act by the deadline will not be able to benefit from the CIT-exemption later, which could result in significant financial disadvantages.

Expert assistance for the announcement

While the opportunity for subsequent announcement is a great chance for companies, it’s important that they proceed professionally. Our tax consultants are ready to assist you in the subsequent announcement process and maximize the tax benefits available to your company. Don’t miss this opportunity, contact our experts today to ensure the best possible outcome for your company!