Question

Your employer has chosen to expand operations into Europe. Choose one country in Europe and research tax compliance issues.

Identify and summarize at least two tax guidelines. The guidelines can be requirements to file informational returns, obtain identification prior to entering business, or requirements of your employer to pay taxes in the designated country.

Answer 1

On the basis of tax structure and applicable corporate tax on business entity , Hungry has the minimum applicable tax . The country is located in central Europe, and have good supportive structure for new business development .

The tax base for foreign as well as domestic business house is the profit before tax under light of Act LXXXI of 1996 , with provisions of loss carried forward, depreciation, dividends, royalties, R & D cost, and any other cost linked with business .The entities need to file their CIT returns on and before 31^st of May in following the tax year. Non-resident business houses are required to pay tax on profit generated in operation in Hungary under clause of limited tax liability.