Page 33 - Central and Eastern European Transfer Pricing Review

Hungary | 33

If extensive, is the competent Is there a fling fee for APAs? Please provide some information
authority effective in obtaining Yes. The fling fee depends on the type on how successful the APA program
double tax relief? of APA (unilateral, bilateral, or multilateral is and whether there are any known
No experience. In the case of transfer procedure) and on the type of applicable diffculties?
pricing issues, it is not usually effective. approach (transfer pricing methods). Unilateral APAs are quite common now
due to the 2009 decrease in procedure
When may a taxpayer submit an for unilateral procedures with fees. Contemporaneously bilateral
adjustment to competent authority? traditional methods (i.e. CUP APAs, nontraditional approaches or more
method, RPM and CPLM), the
The taxpayers are entitled to submit complex cases may cause diffculties
an adjustment to the tax authorities, fee payable is from HUF500,000 for the tax authority. Based on general
as competent authority, at any (approximately EUR1,700) to experience, an APA procedure might be
time. However, we would note that HUF5 million (approximately time consuming (depending on the type
such claims made directly to the EUR17,500) of the APA, the complexity of the intra-
tax authorities are very rare in the for unilateral procedures with other group transaction as well as the capacity
Hungarian market. methods, the fee payable is from of the tax authority).
HUF2 million (EUR7,000) to
May a taxpayer go to competent HUF7 million (approximately Language
authority before paying tax? EUR24,500)
Yes. The possibility to fle an APA exists. In which language or languages
for bilateral procedures the fee can documentation be fled?
payable is from HUF3 million
Advance pricing (approximately EUR10,500) to The documentation needs to be
prepared in Hungarian for fnancial
arrangements HUF8 million (approximately years 2008 and before. Effective
EUR28,000)
What APA options are available, if 1 January 2010 (applicable retroactively
any? for multilateral procedures the for fnancial year 2009 as well) the
Advance rulings and APAs have been fee payable is HUF5 million documentation may be prepared in
(approximately EUR17,500) to
a language other than Hungarian.
available since 1 January 2007 (unilateral, HUF10million (approximately However, it should be made available
bilateral and multilateral). Completion of EUR35,000). in Hungarian within a defned period of
an APA can help mitigate transfer pricing- time upon request of the tax authority.
related risks arising from price setting. If the exact arms length price could
Note, effective from 1 January 2012, not be established or the subject of the In the case of tax investigations carried
the taxpayer is not obligated to prepare agreement is only the methodology, the out by the tax authority after 1 January
transfer pricing documentation covering fling fee is the minimum amount of the 2012, where documentation is prepared
a transaction supported by an APA. fee ranges shown above. in English, German or French (besides
Hungarian), translation cannot be
Does the tax authority publish APA requested by the tax authority.
data either in the form of an annual
report or through the disclosure of
data in public forums?
No.

KPMG in Hungary
Csaba László
Tel: +36 1 887 7420
Email: csaba.laszlo@kpmg.hu

As email addresses and phone numbers
change frequently, please email us at
transferpricing@kpmg.com if you are unable
to contact us via the information noted above.
© 2013 KPMG Central and Eastern Europe Ltd., a limited liability company and a member firm of the KPMG network of independent member firms affiliated
with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.