Horizon Solutions

Horizon Solutions Horizon Solutions Ltd. offers tax consulting services in Budapest.

Hungary’s practical experience with the global minimum tax, explaining covered taxes, IFRS–HU GAAP differences, QDMTT ou...
05/03/2026

Hungary’s practical experience with the global minimum tax, explaining covered taxes, IFRS–HU GAAP differences, QDMTT outcomes, and why zero tax still requires full compliance to avoid significant penalties.

Hungary’s practical experience with the global minimum tax: covered taxes, IFRS–HU GAAP differences, QDMTT, compliance, significant penalties.

Tax due diligence remains a critical element in M&A (mergers and acquisitions) transactions, serving as the foundation f...
05/02/2026

Tax due diligence remains a critical element in M&A (mergers and acquisitions) transactions, serving as the foundation for risk identification and informed decision-making. In recent years, several new developments and challenges have emerged in this field, requiring new approaches and expertise from both advisors and transaction participants.

1. The Rise of Artificial Intelligence (AI)

AI-based tools are playing an increasingly significant role in tax due diligence processes. These technologies can rapidly and automatically process large volumes of contracts, invoices, and other documents, identify risks, and uncover hidden connections. The use of AI accelerates tax due diligence, reduces the likelihood of errors, and enables more targeted, in-depth investigations. This trend is particularly pronounced in the technology, data-driven, and financial sectors.

2.
(M&A)

Tax due diligence remains a critical element in M&A transactions, serving as the foundation for risk identification and informed decision-making.

In the evolving landscape of talent management, companies are increasingly turning to stock-based incentive plans to att...
05/02/2026

In the evolving landscape of talent management, companies are increasingly turning to stock-based incentive plans to attract, motivate, and retain key employees. For HR professionals, understanding the structure, benefits, and compliance requirements of these plans is essential to designing programs that align employee interests with organizational goals—while also offering financial advantages for both the company and its workforce.

Why Stock-Based Incentive Plans Matter for HR

Stock-based incentive plans, particularly those involving employee shares with preferred dividends, are powerful tools for fostering long-term engagement. By granting employees a direct stake in the company’s success, HR can help create a culture of ownership, loyalty, and shared purpose (stock-based incentive plans). Preferred dividend shares are especially attractive, as they provide employees with a stable and predictable income stream.

Understanding the structure and benefits of stock-based incentive plans is essential to align employee interests with organizational goals.

Crypto-Assets have moved from niche digital experiments to mainstream financial instruments held by corporations, invest...
05/02/2026

Crypto-Assets have moved from niche digital experiments to mainstream financial instruments held by corporations, investment funds, and even governments. Their rapid rise challenges traditional accounting frameworks, particularly the International Financial Reporting Standards (IFRS), which were not designed with decentralized digital assets (Crypto-Assets) in mind. As crypto-assets become more integrated into business models, the need for clear, consistent accounting principles grows urgent. At the same time, regulatory initiatives such as the European Union’s Markets in Crypto-Assets (MiCA) Regulation are reshaping the landscape, providing legal clarity that will inevitably influence accounting practice.

Current IFRS Treatment of Crypto-Assets

At present, IFRS does not have a dedicated standard for Crypto-Assets. Instead, companies must apply existing standards by analogy:

- IAS 38 (Intangible Assets): Most cryptocurrencies and Crypto-Assets are treated as intangible assets.

Crypto-Assets moved from niche digital experiments to mainstream financial instruments, this rapid rise challenges the traditional accounting.

The Minister of National Economy has prohibited the acquisition of a Hungarian-owned dairy company by a foreign investor...
17/09/2025

The Minister of National Economy has prohibited the acquisition of a Hungarian-owned dairy company by a foreign investor, the Ministry of National Economy (MNE) announced.

According to the statement, the decision was based on the fact that the transaction (acqusition) would have posed a risk to the security of food supply for Hungarian families. The strategically important dairy sector currently employs more than 15,000 people. The government’s objective is to renew and develop the food industry, preserve and further strengthen sovereignty, and ensure full supply of the Hungarian population with high-quality and affordable food products, the Ministry wrote.

The actual acquisition that was blocked

On June 5 of this year, the Ministry of National Economy received an official notification stating that a foreign-owned corporate group intended to acquire 100 percent of the business shares of Alföldi Tej Ltd., a Hungarian-owned company.
(M&A)

The acquisition of a Hungarian-owned dairy company by a foreign investor was prohibited by the Minister of National Economy.

The rapid expansion of the digital economy has outpaced traditional tax systems, creating significant challenges for gov...
11/09/2025

The rapid expansion of the digital economy has outpaced traditional tax systems, creating significant challenges for governments—especially in developing countries. As multinational enterprises (MNEs) of digital economy increasingly operate across borders without a physical presence, taxing their profits has become a complex and often elusive task. While global initiatives like the OECD/G20 BEPS project aim to address profit shifting and base erosion, many of these reforms are designed with developed economies in mind and remain difficult to implement in lower-capacity jurisdictions.

Value Added Tax (VAT)

In this context, Value Added Tax (VAT) emerges as a pragmatic and powerful tool for improving public finances of digital economy. Unlike corporate income tax, VAT is consumption-based and less dependent on the location of business operations.

Value Added Tax (VAT) emerges as a powerful tool for improving public finances in a digital economy offering opportunity to fiscal systems.

VAT grouping is an optional regime available under Hungarian tax law for domestically established affiliated companies. ...
10/09/2025

VAT grouping is an optional regime available under Hungarian tax law for domestically established affiliated companies. It enables the optimization of VAT payments within related enterprises. This article outlines the key aspects and operational details.

Legal Framework

Article 11 of the EU VAT Directive allows Member States to treat multiple legally independent but closely related entities as a single taxable person. The detailed regulations are set at the national level, and in Hungary, these are stipulated in the VAT Act under the section "VAT Grouping".

Conditions for Establishing a VAT Group

VAT groups can only be formed by entities that are economically established or have a permanent residence in Hungary and qualify as affiliated companies. Joining a VAT group does not create a new taxpayer status, and the definition of affiliated enterprises is determined by other legal regulations, including the Act on the Rules of Taxation, the Corporate Tax Act, and the Civil Code.

VAT grouping is an optional regime available under Hungarian tax law, which presents significant tax advantages but requires careful planning.

Hungary’s Tax Advantage for Crypto EnterprisesHungary offers one of the most favourable tax environments in the European...
09/09/2025

Hungary’s Tax Advantage for Crypto Enterprises

Hungary offers one of the most favourable tax environments in the European Union for crypto transactions and crypto-related businesses. With a flat corporate income tax (CIT) rate of just 9%, and local business tax rates that can drop to 0% in certain municipalities, the country has become a strategic hub for digital asset operations. These incentives are particularly attractive to foreign investors and crypto firms seeking to minimize their tax exposure of crypto transactions while remaining within the EU regulatory framework.

Crypto-to-Crypto Transactions: No Immediate Tax Impact

Under current Hungarian tax practices, crypto-to-crypto exchanges are not considered realization events. This means that companies engaging in such transactions do not incur corporate tax liabilities unless the crypto assets are converted into fiat currency.

Hungary offers one of the most favourable tax environments in the European Union for crypto transactions and crypto-related businesses.

Hungary expands state pre-emption rights over strategic company deals – including ongoing transactions. In a discreet bu...
04/07/2025

Hungary expands state pre-emption rights over strategic company deals – including ongoing transactions. In a discreet but impactful regulatory shift, the Hungarian government has significantly expanded its pre-emption rights over transactions involving strategic domestic companies. The move was formalized in Government Decree 163/2025 (VI. 23.), published in the official gazette on June 23rd, amending the emergency-era Decree 561/2022 (XII. 23.) on the protection of strategically important Hungarian firms.

Previously limited mainly to solar energy investments, the Hungarian state’s right of first refusal can now be exercised across a broad range of sectors, whenever a transaction is prohibited on national interest grounds. Importantly, the new rules apply to transactions already in progress as well.
(M&A)

Hungary Expands State Pre-emption Rights Over Strategic Company Deals – Including Ongoing Transactions

Hungary has positioned itself as one of the most tax-friendly destinations for creative professionals and athletes throu...
30/05/2025

Hungary has positioned itself as one of the most tax-friendly destinations for creative professionals and athletes through the Simplified Public Burden Contribution (EKHO), featuring an effective tax rate as low as 17%—the lowest in the OECD. This attractive tax model makes it easier for web designers, multimedia creators, artists, and athletes to legally optimize their income up to 60 million HUF per year (approximately 150,000 EUR). However, to fully benefit from these preferential rules, several factors should be considered.

The simplified contribution to public burdens (ekho) is a form of personal income taxation that is designed to practitioners of specific professions on the fields of art, media and sports. They can be employees or contractors. Under certain conditions they can opt for this taxation if they also have income (at least the minimum wage) on which they pay the tax according to the general rules.

The simplified contribution (ekho) is a form of personal income taxation designed to specific professions on the fields of art, media and sports.

Impact of U.S. Policy Shifts on Global TradeThe future importance of customs and indirect taxes is increasingly evident ...
28/03/2025

Impact of U.S. Policy Shifts on Global Trade

The future importance of customs and indirect taxes is increasingly evident due to recent shifts in U.S. policy. The return of Donald Trump to the White House has marked a significant pivot in trade policy, emphasizing tariffs and trade protectionism. These changes are poised to reshape global trade dynamics, making customs and indirect taxes more critical for businesses and economies worldwide.

Role of Customs Duties in U.S. Domestic and Foreign Policy

Customs duties, a form of indirect tax levied on imported goods, are set to play a central role in U.S. domestic and foreign policy. The Trump administration's proposed tariffs include substantial increases on imports from various countries, with specific emphasis on China, Mexico, and Canada. For instance, tariffs on Chinese goods could rise to between 60% and 100%, while those on Mexican imports might see a 25% increase.

The future importance of customs and indirect taxes is increasingly evident due to recent shifts in U.S. policy.

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Gizella út 42-44. , MOHA Ház, (MOHA Office Center)
Budapest
1143

Nyitvatartási idő

Hétfő 09:00 - 17:00
Kedd 09:00 - 17:00
Szerda 09:00 - 17:00
Csütörtök 09:00 - 17:00
Péntek 09:00 - 17:00

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+3612943931

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