Leave it to an experienced tax adviser

Hungarian tax law is complex and changes constantly, which makes it a real challenge for companies, and even more so for foreign owners running a business here. An experienced tax adviser helps you find your way through the rules, reduce tax risks, and keep the tax burden at the necessary level within the law. Our advisers understand the business consequences of a decision as well. They do not simply quote the legislation, they know where and when a risk arises.

Where tax advisory helps

• Tax planning and optimisation: we work out tailored solutions so that your company pays the tax it owes, lawfully, and no more.
• Reducing tax risk: we review the company’s tax position and identify potential risks, so that unexpected liabilities can be avoided.
• Support during tax audits: we help you prepare for proceedings of the Hungarian tax authority (NAV) and represent you effectively.
• VAT and corporate income tax advice: we help you interpret the VAT rules and apply corporate income tax correctly and favourably.
• International tax and transfer pricing: if you work with foreign related parties, we make sure the international tax rules are met.
• Local and special taxes: we handle the planning of local business tax (HIPA), sector taxes and other special tax types.
• Employment-related taxes: we help you make use of the tax reliefs available on labour costs.

Which taxes does a tax adviser cover?

Our tax advisory work covers the main Hungarian taxes:

• value added tax (VAT),
• corporate income tax,
• local business tax (HIPA),
• small business tax (KIVA),
• special and sector taxes (for example bank tax, insurance surtax, retail surtax),
• deduction and refund opportunities.

Why choose the MGI-BPO tax advisory team?

• Experienced tax advisers: our colleagues follow legislative changes as they happen. You can read more about them here.
• A complete view: auditors, accountants and payroll specialists are also involved in the work, so we see a tax question in the context of how the whole company operates.
• Experience with tax audits: several of our specialists previously worked as tax inspectors, so we know the authority’s procedures from the inside.
• International background, local expertise: as a member of MGI Worldwide we can also help with cross-border transactions.
• Industry experience: we have worked with companies in many industries, from service providers, manufacturers and traders to the financial sector, including investment funds, fund managers and financial enterprises. Our experience runs from mid-sized companies to multinationals, and we adapt to the size and the structure of the company.
• A tailored approach: every business is different, so we offer solutions built for your situation.

Tax advisory for foreign-owned Hungarian companies

A large share of our clients is the Hungarian subsidiary of an international group, so cross-border questions are part of our everyday work. We support the tax side of setting up and running a Hungarian entity, we handle transactions between related parties and the transfer pricing documentation that goes with them, and we look at how a group-level decision will work out under Hungarian rules. Through the MGI Worldwide network we can also work together with member firms in other countries, so a question that crosses a border does not have to be answered twice.

How our tax advisory work is organised

We work with most of our clients under an ongoing retainer. We do not simply answer isolated questions; we are part of the day-to-day operation. This continuous presence is what allows us to flag opportunities and risks in time, before they turn into problems.

Ongoing advisory work typically includes tasks like these:

• preparing and reviewing VAT returns, and the related advice,
• preparing and reviewing corporate income tax returns,
• continuous tax support for setting up and running a foreign-owned subsidiary,
• fast, expert answers to the tax questions that come up in daily operations.

Because we use our capacity primarily to serve our ongoing clients, we can take on one-off, project-based engagements only to a limited extent. If you are looking for a long-term, reliable tax advisory partner, you are in the right place.

We explain our work in plain language, so that non-financial managers can follow it too, and we put our material opinions in writing, giving you a solid basis for your decisions.

Looking for a tax adviser? Get in touch

With an experienced tax adviser, your company can avoid unnecessary tax burdens and stay compliant with the law. Contact us and let us find the best solution together.

Get in touch with us.

Frequently asked questions

Do you have registered tax advisers and tax experts?

Yes. Our team includes registered, qualified tax advisers, and we involve them according to their field. Several of our colleagues also hold auditor or accountant qualifications, which is a real advantage on complex questions.

Who will be our dedicated adviser?

Every client is assigned a dedicated, experienced contact person who knows how the company works. You can read more about our team and our specialists on the About us page.

What tax risks do you see at our size, and how do you reduce exposure to the tax authority lawfully?

The risks depend on the size of the company and on its activity, from incorrect VAT treatment through gaps in transfer pricing documentation to poorly documented costs. We reduce exposure to the tax authority by lawful means only: accurate returns, proper documentation, and settling the risky points in advance.

Do you represent clients during a tax audit or a dispute?

Yes. We help you prepare for a tax audit and we represent you during the procedure. Several of our specialists previously worked as tax inspectors, so we know exactly what the authority looks at.

What happens if a dispute arises later based on your advice?

We put our material opinions in writing, so your decision is documented and professionally founded. We work with professional indemnity insurance: if the error comes from our work, we stand behind it.

Do you have professional indemnity insurance?

Yes, and it is also set out in our contracts.

VAT, corporate tax, personal income tax, transfer pricing: where are you really strong?

We are at home in all the main taxes. We are particularly strong in VAT, including international and cross-border transactions, in corporate income tax and transfer pricing, and in the taxation of foreign-owned companies and subsidiaries.

Do you handle group and holding structures?

Yes. We have experience with the taxation of group and holding structures, and with transactions between related parties, including transfer pricing.

Can you help with international, cross-border matters?

Yes. As a member of the MGI Worldwide network we are experienced in cross-border transactions and can work together with member firms in other countries.

Do you issue written opinions?

Yes. On material questions we give a written opinion, so that your decisions rest on a documented, professional basis.

Do you work on a project basis or under an ongoing retainer?

Primarily under an ongoing retainer, because that is how we can genuinely support the daily operation. We take on one-off, project-based engagements only to a limited extent, depending on capacity.

How do you involve our accountant or CFO?

We work closely with the company’s finance team, whether the bookkeeping is ours or the client has an internal CFO. Tax advice works well only when it is in line with the accounting and the financial management.

Do you flag opportunities and risks proactively? Can you analyse the tax impact before a decision?

Yes, this is the point of ongoing advice. We do not wait for a problem: we flag opportunities and risks in time, and before an important decision, for example an investment or an expansion, we examine its tax impact.

Have you ever talked a client out of a bad decision?

Yes, and we see that as an important part of our role. If a planned step is risky or unfavourable from a tax point of view, we say so honestly, even when the client would rather hear something else.

How do you price your work, and what is included in the basic fee?

We set the pricing to fit the engagement, whether that is an ongoing retainer or, to a limited extent, a one-off assignment, and we record transparently and in advance what is included and what counts as a separate item. We clarify the details at the first meeting.