The importance of tax strategies
Tax fees are accounting for a huge part of every company’s costs. Therefore, having a clear and thorough tax strategy is a critical factor behind the long term survival and success of any business. Tax regulations and articles can be characterised as an ever-changing domain, influencing every part of economic activity from employment to investments, highlighting the importance of adaptivity and flexibility.
Tax system in Hungary
It holds even more true in case of Hungary having one of the most complex tax systems in Europe. Consequently, managing tax affairs requires high expertise and carefulness as mistakes can lead to legal measures and be costly for a company. Obligatory procedures, like deferred tax calculation and reporting or tax returns preparation are good examples for that, in which seeking assistance from an experienced partner is a good way of reducing risks.
Similarly, tax guidance can be even more important in case of an investigation by the local tax authority (NAV). In order for a reasonable cooperation and handling of the situation, a tax audit preparation is helping managers getting a clear overview about the key points of the process, including special situations, when for instance the authorities are conducting tax audit with personal negotiation. As result of that, a more favourable outcome can be expected, saving time for the management allowing it to focus on other ordinary tasks.
As an alternative, companies can pursue a more proactive taxational strategy including voluntary audits and screening on a regular basis, enabling a better overview about a company’s tax situation and options, significantly reducing the risk of sanctions, while up-to-date data is provided resulting in more accurate decision-making and business planning.
Tax risk analysis
As avoiding disobedience with tax regulations, tax risk analysis is similarly an important part in a company’s tax strategy. Finding the most optimal way of tax burden management aligned with a company’s long term goals is crucial, as tax considerations are highly interwoven with a business’ overall strategy as well: different employing schemes meaning different rate of payroll taxes as well, creating a potential for savings, which similarly holds true for other types of taxes too.
Therefore, discovering and using tax incentives and allowances by professional assistance help attaining a significant reduction in tax fees, resulting in a comparative advantage over other actors on the market.
Tax guidance at MB Advisory
As part of our advising services, we are ready to provide assistance in the various situations mentioned above. Our customers are seeking help in a wide range of cases, from investigations by the tax authority and legal tax processes, filing requests and forms such as tax-reduction based on equity, auditing, to tax advisory services in general.
Furthermore, general and longer-term projects such as tax process establishment and/or improvement including tax training of employees are common, resulting in a higher awareness about tax risks.
Our cooperation with clients can be based on a temporary contract confined to advising regarding a specific topic, where the duration of the service is depending on the complexity, or in case of assistance in a legal procedure it typically lasts until the end of that.
