PwC: “Fewer big changes” in 2014 tax law


PricewaterhouseCooper Hungary has released some six pages worth of analysis on the tax package for 2014, legislation for which was passed by Parliament on November 18. In short, the tax consultants say that no huge surprises are contained in the package, but the changes may bear examination.

“Relative to previous years, the 2014 tax package has fewer big changes,” said PwC Hungary business manager Tamás Lőcsei, “but rather additions and refinements, the main purpose of which is to continue the simplification [of tax law] begun in previous years and to fight the black-market economy.”

Some of PwC Hungary’s findings were the following.

• Upon termination of employment, severance pay and taxation will be allocated on the basis of 2014 tax regulations. According to PwC, “This rule ensures consistency of individual employee and business contributions.”

• All individual health insurance contributions, retirement/pension contributions and unused family social benefits are now deductible on personal income tax.

• The tax on interest from investment will increase from 1.19% to 1.28% as of January 1.

• R&D-related business have many opportunities to reduce their tax base under the new law, particularly if generating revenue. PwC business partner János Kelemen commented that this would “encourage companies to transfer their R&D activities to Hungary.”

• In a seemingly related clause, enterprises employing a researcher who is in a Ph.D. program are exempt from paying taxes on the employee.

• PwC Hungary director László Deák noted a key change in customs administration: “In the future, customs authorities shall not impose a penalty for failure to clear customs should [an individual or entity] subsequently asks for customs clearance and additional payment on declaration is not required.” This change is particularly relevant to those in agriculture, who may face fluctuating currency-exchange rates which change the value of shipped product and thus the declaration.

The entire analysis – Hungarian-language only – may be read here.


Insurers' Premiums Revenue Climbs 5% in 2023 Figures

Insurers' Premiums Revenue Climbs 5% in 2023

Lawmakers to Vote Monday on New President Parliament

Lawmakers to Vote Monday on New President

Wider Margins Lift Magyar Telekom Earnings Telco

Wider Margins Lift Magyar Telekom Earnings

Hungarians Prioritizing Travel Over Renovations This Year Tourism

Hungarians Prioritizing Travel Over Renovations This Year


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.