Critics say Fidesz lawmaker László L. Simon designed the law with the country’s biggest commercial television broadcaster, RTL Klub, in mind.

It follows Economy Minister Mihály Varga’s recent request to the tax office to launch a tax investigation into RTL Klub on suspicion of “a fictitious transaction”. Varga said the transaction resulted in a loss on paper which allowed the commercial TV channel to obtain exemption from paying corporate and advertisement taxes.

The new law says that carryover loss in corporate tax and personal income tax is the amount that the company subtracts from its advertisement tax base. In other words, companies may not use the same tax base reducing item for two different taxes.

Source www.hungarymatters.hu

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