According to Hungarian law, any company that is registered abroad and pays less than 12.67% corporate tax falls into the category of controlled foreign company, and should also pay tax in the country it operates. Domestic companies, naturally, cannot fall into this category, the report added.

The corporate tax rate is 10% in Bulgaria and Serbia, 16% in Romania, 19% in Slovakia, 20% in Croatia and Slovenia, and 25% in Ukraine and Austria.

Several Hungarian companies that are registered in Slovakia are mulling a return to Hungary in response to the corporate and personal-income tax cuts, Slovak business daily Hospodárské Noviny wrote."

Source: Hungary Around the Clock.

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