{"id":6046,"date":"2025-11-04T10:14:48","date_gmt":"2025-11-04T09:14:48","guid":{"rendered":"https:\/\/mgi-bpo.hu\/?post_type=szakmai-hirek&#038;p=6046"},"modified":"2025-11-04T10:23:02","modified_gmt":"2025-11-04T09:23:02","slug":"is-kiva-at-risk-what-to-watch-out-for-at-year-end","status":"publish","type":"szakmai-hirek","link":"https:\/\/mgi-bpo.hu\/en\/news\/is-kiva-at-risk-what-to-watch-out-for-at-year-end\/","title":{"rendered":"Is KIVA at Risk? \u2013 What to Watch Out for at Year-End"},"content":{"rendered":"<p><strong>Why Is This Relevant Now?<\/strong><\/p>\n<p>The year-end financial closing is crucial not only from an accounting perspective but also for <strong>tax decisions<\/strong>. The <strong>10% KIVA rate<\/strong> remains an attractive alternative to corporate tax (TAO), but the <strong>conditions for remaining eligible are strict<\/strong>, and automatic termination can result in a significant additional tax burden, which requires advance preparation.<\/p>\n<p><strong>Exiting KIVA: When Is Taxpayer Status Automatically Terminated?<\/strong><\/p>\n<p>KIVA taxpayer status is automatically terminated if the company:<\/p>\n<ul>\n<li>has <strong>annual revenue exceeding HUF 6 billion<\/strong>, or<\/li>\n<li>has an <strong>average annual statistical headcount exceeding 100 employees<\/strong>.<\/li>\n<\/ul>\n<p><strong>Important:<\/strong> When assessing exit conditions, <strong>connected companies&#8217; data is not considered<\/strong>. This differs from entry conditions, where the HUF 3 billion revenue and 50-employee limits are assessed <strong>on a consolidated basis<\/strong>.<\/p>\n<p><strong>Connected Companies: Relevant at Entry, Not at Exit<\/strong><\/p>\n<p>When choosing KIVA, the revenue and headcount of connected companies are included in the <strong>entry conditions<\/strong>. This is especially important for foreign-owned companies, where the Hungarian subsidiary may meet the requirements on its own, but not at the group level.<\/p>\n<p>The <strong>NAV (Hungarian Tax Authority)<\/strong> may retrospectively examine whether the entry conditions were truly met. If not, taxpayer status may be <strong>revoked retroactively<\/strong>, and the company will fall under corporate tax. In such cases, not only corporate tax but also other taxes replaced by KIVA (e.g., <strong>social contribution tax \u2013 SZOCHO<\/strong>) must be paid retroactively.<\/p>\n<p><strong>Foreign-Owned Companies: Opportunities and Limitations<\/strong><\/p>\n<p>KIVA is available to foreign-owned companies, but:<\/p>\n<ul>\n<li>Branch offices <strong>cannot choose KIVA<\/strong>.<\/li>\n<li>The declaration must be submitted to NAV <strong>electronically<\/strong>.<\/li>\n<li>Companies starting operations mid-year may declare their choice of KIVA at the time of incorporation or registration with NAV.<\/li>\n<\/ul>\n<p><strong>Other Reasons for Termination<\/strong><\/p>\n<p>KIVA taxpayer status is also terminated if:<\/p>\n<ul>\n<li>the taxpayer has <strong>tax debt exceeding HUF 1 million<\/strong> under enforcement;<\/li>\n<li>NAV imposes a fine for failure to issue invoices, receipts, or for employing undeclared workers;<\/li>\n<li>the taxpayer has a <strong>controlled foreign company<\/strong>.<\/li>\n<\/ul>\n<p><strong>Important Note:<\/strong> If the taxpayer settles the debt before the decision becomes final, NAV may revoke the termination decision. The termination date marks the end of a separate fiscal year, and an extraordinary KIVA tax return must be submitted. After termination, <strong>KIVA cannot be reselected for 24 months<\/strong>.<\/p>\n<p><strong>What Can You Do Now?<\/strong><\/p>\n<p>KIVA\u2019s benefits remain only if the conditions are met. Therefore, at year-end, it is advisable to:<\/p>\n<ul>\n<li>check revenue and headcount data;<\/li>\n<li>review the impact of connected companies on entry conditions;<\/li>\n<li>prepare for the financial consequences of switching to TAO.<\/li>\n<\/ul>\n<p><strong>We Help You Decide<\/strong><\/p>\n<p>Our accounting office and tax advisory team can help you navigate the KIVA regulations.<\/p>\n<p><strong>FAQ: Quick Questions About KIVA for Company Managers<\/strong><\/p>\n<p>To start 2026 securely, here are the key points summarized:<\/p>\n<div class=\"___i31lg00 f10pi13n f14t3ns0 f1nbblvp fat0sn4 f1ov4xf1 fekwl8i f1lmfglv f1oz7aqm f1abmfm4 f1w619qj f16h0jq8\">\n<table class=\"___1hm93bs f1ddd56o f16vktn6 f1enuhaj fdclmfp f1ev3kgc ftgm304 f1uinfot fibjyge fvueend f9yszdx f1fu4s3n f3l3pb3 f1s2k7dp f8fmt76 fjvbh62 fysh76l fic4ptz f1yenhzu f1yn6nvh f14tj6oe f1jq587y f1el8yx3 f1pymoxg f1ofu761 fe6itr f7coize f1794535 f70r78m f4zgifc fk1v6el f16pyhcb fo436u6 fzy4j18 fc43013 f1hmrcvb fc4t9fq fgp09rh fjnyn6r\">\n<thead>\n<tr>\n<th><strong>Question<\/strong><\/th>\n<th><strong>Answer (Advisor Summary)<\/strong><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<th scope=\"row\"><strong>What is the biggest financial risk?<\/strong><\/th>\n<td>If taxpayer status is terminated, the company falls under <strong>TAO<\/strong>. Taxes replaced by KIVA (e.g., <strong>SZOCHO<\/strong>) must also be paid. This can result in a significant, unplanned tax burden.<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\"><strong>What\u2019s the difference between the HUF 3 billion and HUF 6 billion thresholds?<\/strong><\/th>\n<td>The <strong>HUF 3 billion<\/strong> revenue limit applies at <strong>entry<\/strong>, and includes <strong>connected parties\u2019 revenue<\/strong>. The <strong>HUF 6 billion<\/strong> threshold is for <strong>exit<\/strong>, and connected parties\u2019 revenue is <strong>not considered<\/strong>.<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\"><strong>What happens if I have to exit due to a connected company?<\/strong><\/th>\n<td>If it turns out that entry conditions were not met due to connected companies, NAV may <strong>retroactively terminate<\/strong> taxpayer status. Only a <strong>precise year-end audit<\/strong> can mitigate this risk.<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\"><strong>How long can\u2019t I reselect KIVA after exiting?<\/strong><\/th>\n<td>In case of automatic termination (e.g., exceeding HUF 6 billion revenue or HUF 1 million tax debt), the company <strong>cannot reselect KIVA for 24 months<\/strong>.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n","protected":false},"featured_media":6045,"template":"","tags":[554],"evszam":[765,1031],"szakmai_cimke":[1181,1002,1182,1177,862,1180,1179,1166,1178,998],"class_list":["post-6046","szakmai-hirek","type-szakmai-hirek","status-publish","has-post-thumbnail","hentry","tag-highlighted","evszam-2025-en","evszam-2026-en","szakmai_cimke-connectedcompanies","szakmai_cimke-corporatetax","szakmai_cimke-foreignownedbusiness","szakmai_cimke-hungariantaxsystem","szakmai_cimke-kiva-en","szakmai_cimke-kivaentry","szakmai_cimke-kivaexit","szakmai_cimke-navhungary","szakmai_cimke-smallbusinesstax","szakmai_cimke-taxplanning"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Is KIVA at Risk? \u2013 What to Watch Out for at Year-End - MGI-BPO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/mgi-bpo.hu\/en\/news\/is-kiva-at-risk-what-to-watch-out-for-at-year-end\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Is KIVA at Risk? \u2013 What to Watch Out for at Year-End - MGI-BPO\" \/>\n<meta property=\"og:description\" content=\"Why Is This Relevant Now? The year-end financial closing is crucial not only from an accounting perspective but also for tax decisions. The 10% KIVA rate remains an attractive alternative\" \/>\n<meta property=\"og:url\" content=\"https:\/\/mgi-bpo.hu\/en\/news\/is-kiva-at-risk-what-to-watch-out-for-at-year-end\/\" \/>\n<meta property=\"og:site_name\" content=\"MGI-BPO\" \/>\n<meta property=\"article:modified_time\" content=\"2025-11-04T09:23:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/mgi-bpo.hu\/wp-content\/uploads\/2025\/11\/veszelyben-a-kiva-mire-figyeljen-ev-vegen\/kiva-megszunes.png\" \/>\n\t<meta property=\"og:image:width\" content=\"940\" \/>\n\t<meta property=\"og:image:height\" content=\"788\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/mgi-bpo.hu\/en\/news\/is-kiva-at-risk-what-to-watch-out-for-at-year-end\/\",\"url\":\"https:\/\/mgi-bpo.hu\/en\/news\/is-kiva-at-risk-what-to-watch-out-for-at-year-end\/\",\"name\":\"Is KIVA at Risk? \u2013 What to Watch Out for at Year-End - MGI-BPO\",\"isPartOf\":{\"@id\":\"https:\/\/mgi-bpo.hu\/en\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/mgi-bpo.hu\/en\/news\/is-kiva-at-risk-what-to-watch-out-for-at-year-end\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/mgi-bpo.hu\/en\/news\/is-kiva-at-risk-what-to-watch-out-for-at-year-end\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/mgi-bpo.hu\/wp-content\/uploads\/2025\/11\/veszelyben-a-kiva-mire-figyeljen-ev-vegen\/kiva-megszunes.png\",\"datePublished\":\"2025-11-04T09:14:48+00:00\",\"dateModified\":\"2025-11-04T09:23:02+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/mgi-bpo.hu\/en\/news\/is-kiva-at-risk-what-to-watch-out-for-at-year-end\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/mgi-bpo.hu\/en\/news\/is-kiva-at-risk-what-to-watch-out-for-at-year-end\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/mgi-bpo.hu\/en\/news\/is-kiva-at-risk-what-to-watch-out-for-at-year-end\/#primaryimage\",\"url\":\"https:\/\/mgi-bpo.hu\/wp-content\/uploads\/2025\/11\/veszelyben-a-kiva-mire-figyeljen-ev-vegen\/kiva-megszunes.png\",\"contentUrl\":\"https:\/\/mgi-bpo.hu\/wp-content\/uploads\/2025\/11\/veszelyben-a-kiva-mire-figyeljen-ev-vegen\/kiva-megszunes.png\",\"width\":940,\"height\":788},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/mgi-bpo.hu\/en\/news\/is-kiva-at-risk-what-to-watch-out-for-at-year-end\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/mgi-bpo.hu\/en\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"News\",\"item\":\"https:\/\/mgi-bpo.hu\/en\/news\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Is KIVA at Risk? \u2013 What to Watch Out for at Year-End\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/mgi-bpo.hu\/en\/#website\",\"url\":\"https:\/\/mgi-bpo.hu\/en\/\",\"name\":\"MGI-BPO\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/mgi-bpo.hu\/en\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Is KIVA at Risk? \u2013 What to Watch Out for at Year-End - MGI-BPO","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/mgi-bpo.hu\/en\/news\/is-kiva-at-risk-what-to-watch-out-for-at-year-end\/","og_locale":"en_US","og_type":"article","og_title":"Is KIVA at Risk? \u2013 What to Watch Out for at Year-End - MGI-BPO","og_description":"Why Is This Relevant Now? The year-end financial closing is crucial not only from an accounting perspective but also for tax decisions. The 10% KIVA rate remains an attractive alternative","og_url":"https:\/\/mgi-bpo.hu\/en\/news\/is-kiva-at-risk-what-to-watch-out-for-at-year-end\/","og_site_name":"MGI-BPO","article_modified_time":"2025-11-04T09:23:02+00:00","og_image":[{"width":940,"height":788,"url":"https:\/\/mgi-bpo.hu\/wp-content\/uploads\/2025\/11\/veszelyben-a-kiva-mire-figyeljen-ev-vegen\/kiva-megszunes.png","type":"image\/png"}],"twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/mgi-bpo.hu\/en\/news\/is-kiva-at-risk-what-to-watch-out-for-at-year-end\/","url":"https:\/\/mgi-bpo.hu\/en\/news\/is-kiva-at-risk-what-to-watch-out-for-at-year-end\/","name":"Is KIVA at Risk? \u2013 What to Watch Out for at Year-End - MGI-BPO","isPartOf":{"@id":"https:\/\/mgi-bpo.hu\/en\/#website"},"primaryImageOfPage":{"@id":"https:\/\/mgi-bpo.hu\/en\/news\/is-kiva-at-risk-what-to-watch-out-for-at-year-end\/#primaryimage"},"image":{"@id":"https:\/\/mgi-bpo.hu\/en\/news\/is-kiva-at-risk-what-to-watch-out-for-at-year-end\/#primaryimage"},"thumbnailUrl":"https:\/\/mgi-bpo.hu\/wp-content\/uploads\/2025\/11\/veszelyben-a-kiva-mire-figyeljen-ev-vegen\/kiva-megszunes.png","datePublished":"2025-11-04T09:14:48+00:00","dateModified":"2025-11-04T09:23:02+00:00","breadcrumb":{"@id":"https:\/\/mgi-bpo.hu\/en\/news\/is-kiva-at-risk-what-to-watch-out-for-at-year-end\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/mgi-bpo.hu\/en\/news\/is-kiva-at-risk-what-to-watch-out-for-at-year-end\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/mgi-bpo.hu\/en\/news\/is-kiva-at-risk-what-to-watch-out-for-at-year-end\/#primaryimage","url":"https:\/\/mgi-bpo.hu\/wp-content\/uploads\/2025\/11\/veszelyben-a-kiva-mire-figyeljen-ev-vegen\/kiva-megszunes.png","contentUrl":"https:\/\/mgi-bpo.hu\/wp-content\/uploads\/2025\/11\/veszelyben-a-kiva-mire-figyeljen-ev-vegen\/kiva-megszunes.png","width":940,"height":788},{"@type":"BreadcrumbList","@id":"https:\/\/mgi-bpo.hu\/en\/news\/is-kiva-at-risk-what-to-watch-out-for-at-year-end\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/mgi-bpo.hu\/en\/"},{"@type":"ListItem","position":2,"name":"News","item":"https:\/\/mgi-bpo.hu\/en\/news\/"},{"@type":"ListItem","position":3,"name":"Is KIVA at Risk? \u2013 What to Watch Out for at Year-End"}]},{"@type":"WebSite","@id":"https:\/\/mgi-bpo.hu\/en\/#website","url":"https:\/\/mgi-bpo.hu\/en\/","name":"MGI-BPO","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/mgi-bpo.hu\/en\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"}]}},"_links":{"self":[{"href":"https:\/\/mgi-bpo.hu\/en\/wp-json\/wp\/v2\/szakmai-hirek\/6046","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mgi-bpo.hu\/en\/wp-json\/wp\/v2\/szakmai-hirek"}],"about":[{"href":"https:\/\/mgi-bpo.hu\/en\/wp-json\/wp\/v2\/types\/szakmai-hirek"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mgi-bpo.hu\/en\/wp-json\/wp\/v2\/media\/6045"}],"wp:attachment":[{"href":"https:\/\/mgi-bpo.hu\/en\/wp-json\/wp\/v2\/media?parent=6046"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mgi-bpo.hu\/en\/wp-json\/wp\/v2\/tags?post=6046"},{"taxonomy":"evszam","embeddable":true,"href":"https:\/\/mgi-bpo.hu\/en\/wp-json\/wp\/v2\/evszam?post=6046"},{"taxonomy":"szakmai_cimke","embeddable":true,"href":"https:\/\/mgi-bpo.hu\/en\/wp-json\/wp\/v2\/szakmai_cimke?post=6046"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}