We have presented some interesting data from the 2015 yearbook of the National Tax and Customs Administration in the chart on the right. In spite of the corporation tax rate being 10% in 2015, companies paid 6.9% into the state coffers on average. How is this possible?
The tax allowance system rests on three pillars and the law lists all the possibilities for this, from “A” to “Z”.
In spite of this, when closing the books for the year, accountants recommend that development reserves are set up in order to reduce the amount of tax payable, although it just means a deferral of tax payment.
Tax consulting has now grown into a separate profession. A tax consultant can ensure that you pay no more and no less tax than legally necessary.
Apart from questions that arise ad hoc, when is it worthwhile employing the services of a tax consultant?
In any event, it is a good idea to speak to a tax consultant if the enterprise returns a profit, is making investments or has loans or a high staff count.
Our review procedure looks at the company’s books from the aspect of the main tax types, on the basis of a method continuously developed over the years. As a result of this, we can be effective at pointing out the tax risks and the tax optimisation opportunities that have not been exploited.
Our consulting services result in our Partners being able to make use of tax allowances, even retroactively for several years, and to avoid significant tax penalties by identifying the risks.
Our results achieved through tax due diligence consultancy for 2016
|TOTAL TAX SAVINGS REVEALED|
|Tax type examined||Hit rate||Savings||Average savings|
|Corporation tax||93 %||HUF 400,000 - 25 million||HUF 1,900,000|
|Social contrib. / Rehab. contrib.||40 %||HUF 200,000 - 3 million||HUF 450,000|
|Company car tax||20 %||HUF 50,000 – 500,000||HUF 165,000|
EXTENT OF TAX RISKS DISCOVERED
TYPICAL VALUES OF THE TAX RISKS REVEALED
HUF 2 million – HUF 163 million
The tax due diligence consultancy process