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Business Reforms in Hungary

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB2017:

Paying Taxes: Hungary made paying taxes less costly for small and medium-sized businesses by allowing additional deduction for new acquisitions of land and buildings.

Enforcing Contracts: Hungary made enforcing contracts easier by introducing an electronic filing system.

Labor Market Regulation: Hungary amended legislation to remove restrictions limiting the operating hours for retail shops.

DB2016:

Labor Market Regulation: Hungary adopted legislation limiting the operating hours for retail shops.

DB2015:

Starting a Business: Hungary made starting a business more difficult by increasing the paid-in minimum capital requirement.

Getting Credit: Hungary improved access to credit by adopting a new legal regime on secured transactions that implements a functional approach to secured transactions, extends security interests to the products and proceeds of the original asset and establishes a modern, notice-based collateral registry.

Paying Taxes: Hungary made paying taxes easier and less costly for companies by abolishing the special tax that had been temporarily introduced in 2010 and by reducing the vehicle tax rate.

DB2014:

Labor Market Regulation: Hungary reduced the premium for night work and weekly holiday work and increased the minimum wage.

DB2013:

Starting a Business: Hungary made starting a business more complex by increasing the registration fees for limited liability companies and adding a new tax registration at the time of incorporation and enforcing a requirement for mandatory registration with the Hungarian Chamber of Commerce and Industry.

Getting Credit: Hungary improved access to credit information by passing its first credit bureau law mandating the creation of a database with positive credit information on individuals.

Paying Taxes: Hungary made paying taxes easier for companies by abolishing the community tax. At the same time, Hungary increased health insurance contributions paid by the employer.

Trading across Borders: Hungary reduced the time to export and import by allowing electronic submission of customs declarations and other documents.

DB2012:

Getting Credit: Hungary reduced the amount of credit information available from private credit bureaus by shortening the period for retaining data on defaults and late payments (if repaid) from 5 years to 1 year.

Paying Taxes: Hungary made paying taxes costlier for firms by introducing a sector-specific surtax

DB2011:

Dealing with Construction Permits: Hungary implemented a time limit for the issuance of building permits.

Registering Property: Hungary reduced the property registration fee by 6% of the property value.

Paying Taxes: Hungary simplified taxes and tax bases.

Resolving Insolvency: Amendments to Hungary’s bankruptcy law encourage insolvent companies to consider reaching agreements with creditors out of court so as to avoid bankruptcy.

DB2010:

Starting a Business: Hungary made starting a business easier by implementing online registration, with registration confirmed 1 hour after application.

DB2009:

Starting a Business: Hungary made starting a business easier by reducing the minimum capital requirement, introducing online filing and publication and making the use of notaries optional.

Registering Property: Hungary established a new registry office in Budapest, which speeded up property registration by reducing the time required to register a title.

DB2008:

Starting a Business: Hungary made starting a business easier through a new company act and corporate procedure act introducing standardized forms, a “silence is consent” rule and electronic registration.

Registering Property: Hungary made property registration faster by opening a second land registry office in Budapest, which reduced the time required to submit an application to the land registry and to register the title.

Paying Taxes: Hungary made paying taxes more costly for companies by increasing the health insurance contribution rate.

Resolving Insolvency: Hungary enhanced its insolvency process through an amendment to its bankruptcy legislation granting secured creditors priority over their pledged security.