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Transfer pricing documentation modifications


Published on 20.12.2022 / reading time approx. 2 minutes

Data provision obligations

The transfer pricing register has been required to be prepared at the same time as the corporate tax return so far in order to take account of any necessary tax base adjustments, but the main data related to the transfer pricing have not been required to be reported in the tax return. According to the transfer pricing rules, taxpayers subject to transfer pricing registration obligations are expected to provide information in their annual corporate tax return in the context of arm’s length price determination.

The expected data provision obligation applies to corporate tax returns to be filed after 31. December 2022. The specific rules on the provision of the data are not yet known, the content of the data provision will be set out in a ministerial decree. According to our preliminary information, the decree is expected to require the provision of the following information: 
  • identification of the affected affiliated company,
  • net consideration by affiliated company and transactions for the respective year,
  • market price according to the comparative analysis, price range,
  • possible tax base adjustment per transaction.

Application of the interquartile range 

According to the expected new rules, the interquartile range will apply where the taxpayer has used data stored in a database or other publicly available or verifiable sources that are verifiable by the tax authorities to determine the arm’s length price. This means that the use of the interquartile range will be more widely expected in the future, with the amendment removing many of the exceptions.

Expected new rule on the transfer pricing adjustment

According to the expected modifications, if the consideration applied by the taxpayer in a transaction with any of its affiliated companies falls outside the arm’s length range, an adjustment to the midpoint/median of the arm’s length range will, as a general rule, be required. An exception to this is where the taxpayer demonstrates that a value within the arm's length range other than the median is the most appropriate for the examined transaction.

If the company adjusts the pricing to the market conditions in a timely manner – if necessary – it is sufficient if the settlement price falls within the interquartile range after the adjustment and no adjustment to the taxable amount using the median value is necessary.

Amount of default penalty

The maximum penalty increases from HUF 2 million to HUF 5 million in  the case of missing or incomplete transfer pricing documentations (registers), and from HUF 4 million to HUF 10 million in the case of repeated infringements.

Fee of the application for determination of the ordinary market price (so called APA)

The fee for an APA procedure will increase from HUF 2 million to HUF 5 million, and from HUF 2 to HUF 8 million for bilateral or multilateral procedures.

The new provisions are expected to be applied for the first time for the assessment of the tax obligation of the tax years starting in 2022.

Awareness-raising in case of verbal contracts

According to Section 4 Subsection 4 lit. d) of the Transfer Pricing NGM-Decree No. 32/2017, in the case of verbal contracts, a detailed description of the content of the contract must be prepared, which shall form an integral part of the transfer pricing documentation.

It is worth preparing the written summary of verbal contracts in time so that the essential parts of the contracts can be processed in the documentation.


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Dr. Roland Felkai

Graduate in Economics, M.A. (London), Tax Consultant

CEO and Partner

+36 1 8149 800

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