The Act No. XLI of 2018 on the modification of the respective tax laws and of other related laws and on the immigration special tax introduced changes in the requirements of the choosability of the KIVA as of 1. December 2018.
According to the modification, individual companies, general partnerships, limited partnerships, limited liability companies, private companies limited by shares, associations, housing associations, associations of forest holders, enforcement offices, law firms, the offices of a notary public, the patent agent offices, foreign entrepreneurs and foreign persons having a domestic place of management may choose the taxation according to the small enterprise tax if
- its general statistical personnel number does not expectedly exceed 50 persons in the tax year prior to the tax year;
- its profit to be accounted in the tax year prior to the tax year does not expectedly exceed HUF 1 billion, in case of a tax year shorter than 12 months the proportional part of HUF 1 billion;
- its tax number was not deleted by the tax and customs administration in each of the two calendar years prior to the tax year;
- the balance sheet date of its business year is 31. December;
- in its annual financial statement to be prepared about its tax year prior to the tax year, its balance sheet total does not expectedly not exceed HUF 1 billion;
Compared to the previous regulation, the legislator has doubled the limit from HUF 500 Mio. by which it has significantly expanded the scope of the choosability of the KIVA.
It is a further facilitation for the KIVA taxpayers that due to the modification, the limit regarding the income shall increase from the previous amount of HUF 1 billion to HUF 3 billion and if this amount is exceeded the small business taxation of the taxpayer shall be terminated.
The taxpayers choosing the KIVA taxation may save significant amounts regarding the public charges. And how high this amount is? Please contact the Law Firm Nyiri in this regard!
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