1. Procedural aspects
    1. 1. At what date does DAC6 start being implemented in your country? Did your country opt to defer the implementation of the Directive pursuant to Council Directive (EU) 2020/876 of 24 June 2020?
    2. 2. What is the form of the declaration which must be sent to the tax authorities?
    3. 3. Does your country require other information than that provided by the Directive to be declared?
    4. 4. Does your country provide for a waiver or a specific treatment for intermediaries enjoying legal privilege?
    5. 5. Have specific rules been enacted in your country to deal with cases where several intermediaries are subject to the reporting obligation?
    6. 6. What are the penalties for failure to report?
  2. Specifities regarding reportable arrangements
    1. 1. Does your domestic legislation lay down reporting obligations in purely domestic situations?
    2. 2. Does your domestic legislation extend the scope of the reporting obligation to taxes which are not contemplated by the Directive (e.g. VAT)?
    3. 3. Does your domestic legislation provide for hallmarks which do not exist in the Directive?

chapter

DAC6 in Hungary

Procedural aspects

1. At what date does DAC6 start being implemented in your country? Did your country opt to defer the implementation of the Directive pursuant to Council Directive (EU) 2020/876 of 24 June 2020?

The Hungarian parliament has opted, as offered by Council Directive (EU) 2020/876 of 24 June 2020 due to the COVID-19 health crisis, for a six-month extension of deadlines for the reporting of potentially aggressive tax planning arrangements in the Act XXXVII of 2013 (“Tax Cooperation Act”) implementing the DAC6 rules.

As in the directive of 24 June, three extensions are provided by the text voted:

  • for stocks of cross-border arrangements, i.e. those for which the first step was implemented between 25 June 2018 and 30 June 2020, the reporting deadline for intermediaries and taxpayers is extended from 31 August 2020 to 28 February 2021 at the latest;
  • for cross-border arrangements made available for implementation, ready for implementation or the first stage of which was implemented between 1 July and 31 December 2020, as well as for the provision of aid, assistance or advice by an intermediary during this same period, the starting point of the 30-day period for reporting is extended from 1 July 2020 to 1 January 2021;
  • for arrangements designed, marketed, ready to be implemented or made available for implementation without the need for significant customisation, the deadline for communication by intermediaries of the first quarterly update of information relating to these arrangements is extended from 31 October 2020 to 30 April 2021.

2. What is the form of the declaration which must be sent to the tax authorities?

The declaration shall be made by electronic means via the form named “KONSTR” to be submitted through the taxpayer’s client gate generally used for communication with the tax authority.

3. Does your country require other information than that provided by the Directive to be declared?

No.

Hungary gives intermediaries a right to a waiver from filing information on a reportable cross-border arrangement where the reporting obligation would breach a professional privilege. Intermediaries therefore can be exempt from reporting obligation due to legal professional privilege provided by Act LXXVIII of 2017 on the Activities of Lawyers. A similar privilege applies to banks.

When a professional privilege applies, the intermediary shall immediately notify other intermediaries involved in the transaction or, if there is none, the relevant taxpayer, about the existence of the reporting obligation.

5. Have specific rules been enacted in your country to deal with cases where several intermediaries are subject to the reporting obligation?

The intermediary is exempted from reporting upon proving that reporting on the same arrangement has already been made by another intermediary in Hungary or in another Member State.

6. What are the penalties for failure to report?

Failure to report or to notify the other intermediary/client, as well as false, late, incorrect or incomplete reporting, shall result in the application of a fine which may not exceed HUF 500 thousand (approximately EUR 1,390).

The fine may be levied up to HUF 5 million (approximately EUR 13,890) if the intermediary does not comply with his reporting/notification obligation even after a notice from the tax authority on a failed reporting.

Specifities regarding reportable arrangements

This part aims at identifying statutory rules which depart from the Directive.

1. Does your domestic legislation lay down reporting obligations in purely domestic situations?

No.

2. Does your domestic legislation extend the scope of the reporting obligation to taxes which are not contemplated by the Directive (e.g. VAT)?

No.

3. Does your domestic legislation provide for hallmarks which do not exist in the Directive?

No.