Deloitte Legal newsletters

New amendments to the Civil Code and the REIT Act - 23 June 2016

Both the amendments to Act V of 2013 on the Civil Code (hereinafter: "Civil Code") and the tax law changes for 2017 will be promulgated in the next few days. One such change is the amendment to Act CII of 2011 on Real Estate Investment Trusts (hereinafter: "REIT Act").

Supreme Court ruling on hostile takeover defence costs - 13 June 2016

Supreme Court of Hungary has issued a ruling of major significance regarding the tax treatment of hostile takeover defence costs. The Supreme Court, contrary to NAV, agreed with the taxpayer's position in all respects stating that hostile takeover defence by capital market players is a reasonable business behaviour; therefore the related expenses may be deducted from the corporate income tax base, and the related VAT is also deductable. The ruling constitutes a precedent as neither the European Court of Justice, nor Supreme Courts of other European countries have adopted any decisions on this issue.

Positive changes in RIC regulations - 20 May 2016

No regulated investment companies ("RICs") have been founded since the promulgation of the Act on Regulated Investment Companies ("RIC Act") in July 2011. The main reason for this is that the regulations included several provisions that caused practical difficulties and so made the foundation and operation of RICs surrounded by uncertainty.

New rules of e-signature - 12 May 2016

Electronic documents, electronic contracting and administration are increasingly replacing paper documents, traditional, paper-based contracting and authority proceedings worldwide, so they are gaining round both in the European Union and in Hungary. The main question concerning electronic proceedings is the authenticity and probative value of electronic documents created in these electronic proceedings.

Changing rules of the fixed-sum compensation for debt recovery costs - 1 April 2016

The rules of compensation for debt recovery costs have been amended and transferred from the Civil Code. The existing practice of both the accounting and the tax treatment of the compensation changes.

Consumer protection inspection plans for 2016 - 29 January 2016

The Hungarian Authority for Consumer Protection announced its inspection programme for 2016 (hereinafter: "Programme"). To help prepare for the frequent consumer protection inspections, in this newsletter we have outlined the target areas and the most common mistakes made in these areas. Content:

• E-commerce
• Inspection of compliance with the stricter rules of product demonstrations
• Inspection of particular products, laboratory tests
• Summary
  

Provisions on the new Employee Stock Ownership Plan - 23 December 2015

The regulations on the amendments of tax laws in 2016 contain several peculiarities including the provisions on the new Employee Stock Ownership Plan (hereinafter: ESOP) extending the range of employee incentives. According to the new rules, the programme may also facilitate the management of securities obtained under employee incentive schemes leading to significant savings both on the employer's and the employee's side. This issue of our Newsletter will introduce the key provisions pertaining to the new ESOP.

The legal aspects of telework - 23 November 2015

Retain talented workforce is critical for employers. This can be achieved using various incentives and benefits if the employer is unable to raise salaries to the level desired by the employees. One such benefit could be the introduction of telework. This allows employers to reduce certain costs and administrative burdens. On the other hand, employees can attend to work matters from home in a comfortable and relaxed environment, avoiding up to several hours of travel every day. This can help achieve work/life balance which is a top priority for employees

Increased minimum share capital requirement for limited liability companies - 22 October 2015

The new Civil Code entered into force on 15 March 2014 and we have described the resulting changes in several editions of our newsletter. However, a deadline relevant for limited liability companies (Kft.) that is worth mentioning again is fast approaching.

Easier data transfer to countries outsite the EU - 16 September 2015

As of 1 October, the amendment of Act CXII of 2011 on Information Self-determination and Freedom of Information ("Information Act") enters into force, introducing the concept of binding corporate rules (BCR) into Hungarian data protection law. The use of BCR facilitates easier data forwarding abroad, especially to countries outside the EU and EEA for company groups operating in more than one country.

Amended rules of proceedings for the protection of possession - 17 April 2015

In this issue of our Newsletter we wish to inform you of the changes introduced by Government decree No. 17/2015. (II. 16.) on proceedings for the protection of possession in the competence of the notary (hereinafter: Decree) as well as related practical issues. Below you will find a brief summary of the latest developments.

Developments in project financing - 23 March 2015

On 17 March 2015 Deloitte Legal Szarvas, Erdős and Partners Law Firm held a joint business breakfast with the Loan Market Association ("LMA") entitled "Developments in project financing in Hungary and abroad". In this current issue of our newsletter series, you may read a summary of the event.

Limited partnerships (bt.) and general partnerships (kkt.): The deadline for amending the articles of association is over on 15 March - 18 February 2015

Limited partnerships and general partnerships have only one month left to harmonise their articles of association with the provisions of the New Civil Code. Although the New Civil Code introduced only a few changes regarding limited and general partnerships compared to the old one, the permissive provisions of the New Civil Code raise some issues to consider for small enterprises, too. In this Newsletter we wish to draw your attention to the most important changes and practical issues.

New Regulations impacting the Retail Sector - 21 January 2015

We would like to take this opportunity to inform our clients about the modifications introduced by Act CII of 2014 on the Prohibition of Work on Sunday in the Retail Sector (hereinafter: Act). In addition, we set forth below the practical implications of these modifications. The aim of the new legislation is to provide retail employees with adequate rest periods and to strengthen family relationships. In order to facilitate these aims the Act intends to regulate the opening hours of stores.