Hungary.

Eligible taxpayers must meet all of the criteria specified in EVA Act

a) and shall notify the state tax authority of their intention to satisfy their tax liabilities for the tax year in accordance with the provisions of EVA Act,

b) or be registered by the state tax authority as eligible taxpayers for the tax year pursuant to a special provision of EVA Act.

The following entities may be eligible:

• private entrepreneurs;
• sole proprietorships
• general (unlimited) partnerships;
• limited partnerships;
• limited liability companies;
• cooperatives;
• forest management associations;
• bailiff's offices;
• law firms and notaries' offices;
• patent agencies.

In a financial year a person can be considered as a subject of taxation if

a) his total annual revenue in the tax year (financial year) immediately preceding the previous year - or in the tax year when functioning as a pre-company if the first day of this period falls on the tax year immediately preceding the previous year and the last day falls on the previous tax year - did not exceed 30 million forints and,

b) it can be reasonably expected that his total revenue for the previous tax year (financial year) will remain below 30 million forints as calculated for the entire year.

For the purposes of paragraph a) and b),

c) 'revenue' shall mean

ca) for ineligible private entrepreneurs - the entrepreneurial revenue defined in the Personal Income Tax Act, including the value-added taxes charged on such revenues in accordance with the provisions of the Act on Value Added Tax,

cb) for ineligible legal persons, unincorporated business associations and sole proprietorships - the sales revenue and similar income shown in the profit and loss account, or the taxable income shown in the profit and loss statement as defined in the Accounting Act, including the value-added taxes charged on such revenues in accordance with the provisions of the Act on Value Added Tax,

cc) for eligible taxpayers - the revenue calculated according to the provisions specifying that in detail in EVA Act.

In a financial year a person can be considered as a subject of taxation if

a) his revenue for the tax year, as defined and calculated according to the provisions of EVA Act, can be reasonably expected to be less than HUF 30 million;

b) he is not engaged in any activity during the tax year that falls within the scope of the Act on Excise Taxes and the Special Regulations on the Marketing of Excise Goods;

c) he is not engaged during the tax year in any of the indirect agency activities specified in customs laws;

d) he has a current account in Hungary.

The EVA base shall be all revenue received by an eligible taxpayer in a tax year.

With regard to eligible taxpayers to whom the Accounting Act does not apply, revenue shall also mean any valuable consideration received from others in connection with or arising out of the taxpayer’s entrepreneurial (business) operations under any legal title and in any form, including value-added taxes as charged. Valuable consideration shall, in particular, mean money, credit tokens (including, in particular, gift certificates, notes, bills, coupons and other similar instruments, which can be used as a payment instrument in exchange for the goods and/or services of one or more persons, or as an instrument that is accepted by one or more persons in exchange for any part of an existing liability), things, securities, services received and transferable rights of value, and any debt or overdue liability of the taxpayer that has been cancelled, expired or assumed.

The EVA base for taxpayers affected by the Accounting Act shall be determined on the basis of the total revenue received in the tax year
a) plus all advances received during the tax year (financial year);
b) less the advances settled upon performance or repaid during the tax year from the advances that have been received and calculated as an increase in total revenue when ascertaining the EVA base pursuant to Paragraph a).

The EVA rate shall be 37 per cent of the positive tax base.

If the income of an eligible taxpayer plus the sum that is to comprise part of the total revenue collectively exceed the amount limit prescribed for eligibility, the EVA rate shall be 50 per cent of the amount in excess of the said amount limit for eligibility.

Deadlines for filing EVA returns are:

a) with respect to eligible taxpayers to whom the Accounting Act does not apply, the 25th day of February of the following tax year, unless eligibility terminates during the year, in which case the deadline is the 30th day following the date of termination;

b) with respect to eligible taxpayers to whom the Accounting Act applies, 31 May following the tax year to which it pertains, or if eligibility is terminated during the year, the last day of the fifth month following the month of termination.

The tax is collected by the National Tax and Customs Administration.