Hungarian Parliament Adopts 2017 Budget Measures Including IP Regime Amendments and Other Changes

On 7 June 2016, the Hungarian parliament adopted legislation including the 2017 Budget Measures. One of the main measures is the amendment of the country's IP regime to bring it in line with the modified nexus approach as developed under Action 5 of the OECD BEPS Project ({News-2016-05-09/P/2- previous coverage}). The changes apply from 1 July 2016, with royalty income from IP owned prior to that date generally grandfathered to 30 June 2021.

Other changes include:

• The general anti avoidanc…