Accountancy and reporting
We provide accountancy and financial services including bookkeeping, payroll, financial controlling, profit and loss calculations, cash flow projections and many more. All of our services focus on small and medium-size, foreigner-owned businesses. This specialization, in combination with related areas of our activity (like business planning, incorporation, residency and work permits) yields a unique pool of knowledge and experience that no other accountancy service provider in Hungary can boast. Working with a senior accountant, junior colleagues, and – when needed – external specialists like VAT or customs experts, we are able to cover all your accounting needs in one place.
Accounting rates are based on your company’s business activity and volume, although all our packages include the work of an English-speaking, certified accountant, representation at the tax authority in case of inspections, and liability insurance to cover potential accounting errors. Some activities may be considered high-risk and incur higher accounting fees. At the same time, we do our best to offer cost effective solutions to clients and will be happy to work with your staff to share the workload in an optimal way.
For micro sized companies or in the first period of operation
For small, established companies
Prefered package for most of our mid sized companies
Our package for larger corporate clients
- Booking every incoming or outgoing invoice (based on number of monthly invoices)
- Pairing each invoice with bank account / petty cash transaction records
- Invoice processing for cost-center based bookkeeping (e-invoices welcome)
- Active retail transaction recording (cash register tapes)
Registering bank account statements
- Booking every incoming or outgoing transaction (based on number of bank accounts)
- Pairing all transaction to invoices
VAT records and declaration
- Calculating the payable or reclaimable VAT by the 20th of each month for the previous period
- Sending the calculation to Client for confirmation before sending the VAT declaration to the authorities
- Submitting VAT declaration to authorities
Payroll / HR administration
- Registering employees in payroll system (based on number of employees)
- Reporting new employees to the tax authority
- Calculating salaries, payable taxes and contributions monthly taking into account holidays, sick leaves, etc.
- Providing monthly report on transfarable salaries and taxes
- Sending payroll slips to the company representative every month for the previous month
- Submitting monthly payroll report to authorities
- Preparing exit documents in case of termination and reporting end of employment to the tax authority
- Transfering salaries from Client’s bank account
- Monthly cafeteria administration
Representation of Company in front of tax or local authorities
- Representing the company by an authorization at routine or comprehensive inspections, in case of data inspections.
- Chief accountant consultation included in package (based on quarterly hours)
*Some of the service details only included in higher packages. For a detailed proposal, please ask for a custom quote!
VAT is value added tax, also known as sales tax in some countries. In Hungary, VAT is usually 27%, and whenever you buy something in a shop for example, it is always already included in the price you see, so you do not have to start counting each time how much something will cost. When you start your company in Hungary (which will immediately receive an EU VAT number as well), and issue your own invoices towards your clients, you will charge VAT only towards individual (retail) buyers or corporate EU-based buyers who are not registered for VAT. However, if you are an international trader, you may not charge VAT at all.
- submitting invoices and bank statements to the accountant: 5th of each month
- reporting sick leaves, salaries or bonuses: 1st of each month
- reporting any changes in the company’s operations (changes in ownership, owner’s or director’s personal data, bank accounts, activity, employees, etc.): within 5 working days
- fiscal year closing / annual reports due: May 31st for the previous fiscal year
- VAT declarations and payments: on the 20th of each month, for the preceding month or quarter (depending on how often the company declares VAT)
- payroll taxes & social contributions: on the 12th of each month, for the preceding month
- corporate tax advances: paid quarterly on the 20th of July, October, January and April, in 4 equal installments, calculated on the basis of the previous closed fiscal year
- local business tax advance: paid twice a year (15th March and September)
The basic Hungarian business taxes are the following:
- local business tax: 2% on net revenues (meaning: your income minus any direct costs such as cost of goods or services that are re-sold)
- corporate tax (also known as profit tax): 9%; applies to profits after the deduction of all expenses including direct and general expenses
- dividend tax: he company’s profit after tax can be either saved for future activities or paid out to shareholders as dividend; in Hungary, dividend tax is 15% and there is an additional 14% health insurance contribution payable which is maximized in HUF 450,000 – however, this only applies to Hungarian residents; in the case of non-local residents, specific bilateral agreements between Hungary and your country of residence may apply.
- VAT (value added tax, or also known as sales tax in some countries): usually 27% (depending on the product or service you sell). You will charge VAT only towards individual (retail) buyers or corporate EU-based buyers who are not registered for VAT, meaning that if you are an international trader, you may not charge VAT at all.
Invoices to buyers/clients can only be issued through a licensed invoicing software (recommended) or an official ’invoice booklet’ (not very convenient). Invoices issued in Excel, foreign invoicing programs or other means are not acceptable in Hungary. We strongly recommend that you purchase a license for an invoicing software (license fee: approx. EUR 140/year) and learn to use this program through our assistance. This way, you’ll be able to issue invoices in Hungarian and English, in full compliance with the local regulations, and even in PDF format if you wish.
In Hungary, all companies must submit regular accounting reports (in Hungarian) from the date of their incorporation. We are aware that some countries are more flexible or lenient in this regard, so we would like to ensure that our clients are aware of all their obligations including those as for accountancy when setting up a company in this country, and can (with our assistance) run a compliant operation.