The Biggest Challenges for Hungarian Firms

According to a survey by EY Hungary, the biggest challenges for companies are exchange rate risk and meeting expected wage increases, the international consultancy said, based on the results of a survey of 300 Hungarian tax and finance executives.

Respondents also cited inflation, energy price volatility and ensuring adequate cash flow as other challenges to be addressed. Among tax risks, respondents highlighted VAT and transfer pricing, as well as the introduction of a global minimum tax, EY said.

The research also reveals that nearly half of companies have recently completed, are currently undergoing or are about to start a tax audit, while all others expect to be knocked down by auditors soon.

It also emerged that eight out of ten Hungarian companies have already started integrating AI into their tax processes, although none of those surveyed have fully integrated AI into their finance operations.

According to Tamás Vékási, CEO of EY Hungary and head of the tax and legal advisory business in Hungary and the region, this is important because companies that start preparing now and consciously transform their financial and tax processes will be able to gain a competitive advantage in the new tax year. And who will be able to effectively integrate the various AI technology solutions that can dramatically increase efficiency while reducing operating costs will play a huge role in this.