As mentioned in our previous articles, the EU Directive 2022/2523 (the “Directive”) has been implemented into Hungarian law and Hungary has become one of the countries applying the global minimum tax regime. As is the case for all other taxes, tax liability is not entirely limited to the payment of the tax, but in order to comply with the law, all other tax obligations must be fulfilled, in particular the obligation to file, report and declare taxes. This article seeks to shed light on these ‘administrative’ tax obligations.
The administrative tax obligations related to the global minimum tax can be divided into three groups: firstly, the obligation to register when becoming subject to the legislation; secondly, the obligation to register (information) for the company; and thirdly, the obligation to file a return. Article 44 of the Directive provides details of these tax obligations.
Following the chronological order, we will first turn to the obligation to register, since a domestic constituent entity (i.e. a member of a multinational or domestic group of companies) who is subject to the personal scope of the regulation must register with the NAV within 12 months of the first day of the tax year in which it first has come under the scope of the regulation. Given that the global minimum tax entered into force on 1 January 2024, domestic entities shall be subject to the obligation to register in the tax year starting after the entry into force, i.e. the taxpayer has 12 months from the first day of the tax year starting on 1 January or – in the case of a special fiscal year – that specific date, to comply with this administrative obligation. The tax liability is fulfilled using the GLOBEA form published by the Hungarian Tax Authority, which can be completed and submitted using the form-filling software ÁNYK or ONYA.
A recent development related to the second and third administrative obligations is the plan by the European Commission on 24 October 2024 of a recent proposal for Directive 2011/16/EU (“DAC Directive”) on administrative cooperation, DAC9, by which the EU aligned the DAC Directive with the global minimum tax regime. By means of the so-called information return and tax return, the group member fulfils its obligation to notify and declare the additional tax to the tax authorities, for which the EU has created a form for simplification and has supplemented the DAC Directive by including it in Annex VII to the DAC Directive.
Data reporting and tax returns may be filed by each group member separately or by the designated group member on a consolidated basis to the tax authority of its residence. The tax return submitted will contain information relating to all group members and therefore, in the framework of the exchange of information under the DAC Directive, the tax authority concerned will send the relevant information to the tax authority of the group member’s residence. The deadline for submitting these is the end of the 15th month following the last day of the tax year affected, but in the first year of the entry into force of the legislation this deadline has been extended by a further three months to 18 months.
