Business News from Hungary by Peterka & Partners
Tax-free acquisition of start-up shares
The commitment and motivation of employees and executive officers have always been key to the success of a start-up. A way to develop and maintain such qualities is to provide shares in the company. From 2024, start-ups may offer tax-free shares to their employees and executive officers, provided that they do not divest their shares for at least 3 years after the acquisition. Hopefully, this new tax regulation will help start-ups to be more successful than ever before.
Introduction of a global minimum tax
As of 1 January 2024, the global minimum tax (‘GMT’) came into force in Hungary. As a result of which, it is now applied by all OECD and G20 countries. With the introduction of the GMT, the international tax system went through a major reform. It is set to ensure that multinational enterprises shall be subject to a minimum tax rate of 15%. This rate shall apply to companies with an income above EUR 750 million. It is estimated that the GMT will generate around EUR 136,755 billion additional global tax revenue annually.
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