Simplified documentation

For transactions not exceeding HUF 50 million in value, net of VAT, the Ministry of Finance Decree allows the use of simplified documentation, which has to include: the related parties' data; the subject matter, date, term and conditions of the underlying agreement; a benchmarking study; and the date when the documentation was prepared.

Simplified documentation

For transactions not exceeding HUF 50 million (the value should be calculated from the date of the contract until the last day of the given financial year) in value, net of VAT, the Ministry of Finance Decree allows the use of simplified documentation. In determining the amount of the transactions the amounts of agreements must be determined on a consolidated basis.

Simplified documentations shall contain the following:

• description of the contracting parties;
• subject, date, content and details of the agreement;
• the arm’s length price, and
• the date on which the documentation was prepared or amended.