Hungary: LLC capital requirements, accounting | KPMG | GLOBAL

Hungary: LLC capital requirements, accounting and tax implications

Hungary: LLC capital requirements, accounting

Hungary’s civil code (2014) establishes a higher capital requirement for limited liability companies, and because of this, there may be concerns that supplementary payments made to satisfy this requirement may have tax implications.


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The civil code, as enacted for 2014, provides a two-year “grace” period if the company did not intend to amend its “deed of foundation” to reflect the capital increase rules in the civil code.  There have been concerns that supplementary payments using owner loans may be reclassified by the tax authority as a forgiven liability. 


Read an October 2015 report prepared by the KPMG member firm in Hungary.

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