Shokokai seminar


7 topics you should be aware right now

Shokokai Seminar

In October 2017 Deloitte hosted the professional seminar of Shokokai and highlighted the most relevant business issues companies should be aware of. We recognized 7 main topics, and made it available for you.


The General Data Protection Regulation (GDPR) has been approved, with the objective to harmonize the current fragmented legal framework for data privacy across Europe and introduce a high level of protection for individuals' personal data.

The GDPR will be enforced as from 25 May 2018 directly across 28 EU Member States after a two years implementation period. Non-compliance is subject to an administrative fine up to EUR 20 million or 4% of the global revenue, whichever is higher.

Copanies should launch a GDPR compliance project

  • to asses their current state of compliance with the GDPR,
  • to develop an action plan to close the gaps, and
  • to implement the actions required to achieve GDPR compliance.

Compliance must be reached by 25 May, 2018.

Csaba Márkus

Environment, sustainability and climate change

Environment, sustainability and climate change are hot issues and demanded services for local and global challenges today. It ranges from permit reviews, through sustainability reporting requirements until climate risk assessments.

It is obligated to fulfill environmental requirements under EU and local law. Sustainability services are matter of transparent operation, and climate change services are tools for protecting core infrastructure from the worst, and adapting to the changing conditions.

Companies should

  • continuously follow environmental regulations,
  • update and upgrade sustainability reporting obligations yearly and
  • incluse climate risk into their decision making.

 For part of the solutions, we recommend different local, EU, Visegrad 4 or global financial resources to be applied.

Ákos Lukács
Senior Manager


Efficiency growth

The Hungarian manufacturing companies are struggling with serious shortage of labor and increasing expenses, therefore efficiency improvements has been never more important than now. Increasing revenue, i.e. manufacturing more with the same human resource capital can have great impact.

Despite the serious shortage of labor and increasing expenses, the companies have a huge opportunity to increase their revenue thanks to the favorable market conditions.

Companies should invest in efficiency improvements both in overhead and production.

Dóra Major

CbC reporting and transfer pricing documentation

There is two new transfer pricing compliance requirements in Hungary:

  • Country-by-Country Reporting
  • New transfer pricing documentation requirements.

In line with BEPS initiatives Country-by-Country Reporting („CBCR”) obligation has been introduced in Hungary and the transfer pricing documentation requirements will also be harmonized with OECD/BEPS requirements.

The companies has to adopt new transfer pricing Masterfile/local file approach with an extended content compared to the current requirements.

CBCR is a new requirement for multinational groups. Non-compliance is subject to a default penalty up to HUF 20 million (EUR 64,000) even at the level of the local subsidiaries.

From 2018 new transfer pricing documentation has to be prepared in line with the new rules. CBCR obligation should be investigated to find out the actual obligation for the local entities.

Hedvig Tóth

VAT - Real time data provision obligation

As of 1 July 2018, taxpayers issuing invoices using an invoicing software are obliged to provide real time data to the Hungarian Tax Authority (HTA).

The real time data provision obligation will affect most of the companies and imply significant administrative burden.

In order to ensure the compliance companies should consider introducing automated solutions.

Deloitte Hungary's dedicated tax technology team is developing end-to-end, automation solutions (both tailored and standard) which can ensure companies compliance with the legislative requirements.

Zoltán Tancsa

Immigration ICT visa, Social Security

New permit is available for managers, specialist and trainees delegated to Hungary within the same group of companies with registered seat outside the EU.

Applicable for maximum 3 years period and cannot be extended

Process time: 60-70 days

Available for individuals working in Hungary more than 90 days.

Reconciliation with the Hungarian authority is currently running to have a deeper view of the practice of the authority.

Beáta Horváthné Szabó


IFRS provides an excellent opportunity for companies to simplify administration.

Based on the Hungarian regulation companies have the possibility to adopt IFRS for local reporting purposes as well.

To adopt IFRS reporting for Hungarian purposes requires significant amount of preparation and also certain administration to be done in a timely manner as a condition to the adoption. The IFRS transition - in principle - should be performed on a tax neutral manner since it should not result in lower tax liability compared to the tax liability based on Hungarian GAAP reporting.

As part of the preparation for the transition gap analysis should be performed to identify accounting differences between the group reporting and EU IFRS standards. In addition the tax gap analysis should also be performed to identify one-off and ongoing adjustments to reach tax neutrality. Internal systems are to be set up for IFRS.

Endre Ádám

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