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Fiduciary trusts 2024

Fiduciary trusts (“bizalmi vagyonkezelés” in Hungarian) have spread in the past few years. In recent years, trusts offering complex wealth management solutions have become increasingly popular in Hungary as well, with the number of managed asset accounts exceeding one thousand by February 2024. A legislative amendment contributed significantly to the increase in the number of trusts in 2023: the abolition of the tax-free placement of assets by private trustors encouraged many wealthy individuals to set up trusts before autumn 2023.

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Millions in tax advantages through retrospective reporting of previously non-reported participations in Hungary

In 2024, companies will have the opportunity for a tax amnesty by retrospectively reporting participation acquisitions that were not reported to the Hungarian Tax Authority previously. This will allow corporate income taxpayers who previously failed to report their participations obtained in other companies which could have exempted them from paying Corporate Income Tax (CIT) upon sale. The general deadline for the retrospective reporting of participations is 31 May 2024. The biggest beneficiaries of the retrospective reporting could be those companies expecting a significant market value growth of their subsidiary.

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Financing opportunities for the SME sector in 2024

Ever since the economical downturn of 2020, the SME sector in Hungary has been experiencing difficulties with the procurement of debt financing. In response, the Hungarian Government has expanded upon its supply of state-subsidised loans, while on the other side, some market participants have come up with creative solutions to raising capital for their companies. Some of these solutions may seem unusual to domestic markets, a couple of which we will discuss in this entry

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Company assets in marriage

RSM\'s family lawyers often find that when it comes to business property, spouses cannot decide: who owns the \"company\"? Do the spouses own the business shares jointly or separately? In the case of a business share, it would be easy to define ownership as \"in whose name it is held\", but the question is more complex in the case of matrimonial property.

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Divorce: the family business can go bust if you don't prepare in advance

Although in Hungary many people shy away from the idea of a prenup for emotional reasons, it is irresponsible for couples who run a joint business not to consider a negative scenario. Not only can costly and protracted litigation be avoided in divorce by a prenuptial property agreement, but the future of the family business could well depend on it. The number of contracts designed to protect family assets registered in the Register of Matrimonial and Cohabitation Property Contracts is increasing every year.

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When is a holding structure the right choice?

The majority of small and medium-sized enterprises are destined to face an increasing number of challenges as they grow in size. A carefully developed holding structure offers asset protection and tax optimisation benefits and is suitable for simplifying corporate governance processes. What is a holding company, and what are the benefits of a holding structure? Who should establish a holding company, and when? The key facts of holding structures are summarised in this post.

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Shadows cast over the private equity fund market

While private equity funds remain dominant players in global financial markets, the current financial and macroeconomic trends may cast some dark clouds over them. Investors will therefore be forced to adjust their proven strategies to achieve or at least approach the returns they have historically experienced.

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Risks of a generation change - advantages of planned wealth transfer

Whether we are talking about a generation change within a family or the selling of a company, a customized structure serving the security of company assets and ensuring the continued operation of the company should be developed. An unregulated transfer of a company or wealth brings the risk of a reduction in value. The key is therefore conscious organization development and timely started preparation.

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Tax consequences of company sales and acquisitions

At the time of company or division sales, sellers have a tax liability (an obligation to pay income tax),let they be private individuals or companies. In connection with purchasing a company or division, any tax payment obligations and potential subsequent uses of deferred losses must be examined.

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