András Tállai to oversee restructuring of tax office

The mandate of the state secretary is effective until December 31, 2015. Earlier reports stated that NAV would be supervised by the the state secretariat of the National Economy Ministry.

Following the restructuring, NAV would classify businesses as of the second quarter of 2016 and those paying their taxes would receive more preferences by as soon as next year, Tállai told journalists earlier today.

NAV will list businesses in three categories, classifying them as reliable, average or risky.

The governmentʼs aim is to create a new, customer-friendly tax system, Tállai said.

To be classified as reliable taxpayers, companies, having operated for at least three years, cannot have tax arrears of more than HUF 500,000 in the past five years, among other requirements, MTI reported. For such companies, tax audits will last a maximum of 180 days after April 1, 2016, and the deadline for VAT reimbursements will be reduced from the current 75 days to 45 days from January 1, 2017 and to 30 days from 2018, MTI added.

Tállai reportedly said the more than 1.5 million private taxpayers who only receive income from their employer and are not entitled to a tax benefit will not have to prepare a tax return from 2016 as the tax office will prepare the document for them. From 2017, the tax office will prepare the tax return of 3.5-3.8 million people, who will not have to submit a tax return in either electronic or paper form, the state secretary said.

Minister Mihály Varga said earlier that his ministry NGM is planning to introduce a six-month deadline for tax office audits of companies that promptly fulfilled their tax payment obligations in recent years.