Budapest Business Journal 23/02

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SPECIAL REPORT: VOL. 23. NUMBER 02

what to expe Tax experts tell us tax ’s top−ten earning the We asked Hungary about accounting firms you consultants and how they can help we new tax laws, and These are the answers by deal with them. ranked full list of firms, received. For a 16−17 and 20−21. part of their revenue, see pages BBJ STAFF

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dedicate a tax credit if they or cultural purposes sport can be payable tax to 7.5% tax credit (a maximum of realized).

like yours help the tax How can a service the changes in clients deal with structure? us to work importance for in It is of utmost behalf of our clientsour together and on navigate and adviseand/ tax issues. We every tax question tax clients through in front of the or represent them to our international authority. Thanksare able to provide our we entire BDO network, company or an services to a local company group. your customers choose your Why should customers choose Why should the year of financial service over others? service going to be others? prepare service over audit and is are many high-quality Companies must in Hungary. in mid-market administration. tasks. This There As the leader and advisory firms we are able to provide with provider has a different corporate and increased administrative Partner tax advisory firms, and quality as the top for true for companies one of Every firm Zsófia Siegler, is especially If I had to highlight level the same services offering more activities. top service culture. while important industry, would say we are of the more and commercial for firms in the our strengths, I What are some due to our structure We know that excellence the tax code, do the tax situation flexible pricing, of experience the changes in clients to pay in costumer care. changes in clients. The Our 25 years with Given all essential for our keeps businesses in 2015?system has been versatility. market, coupled and you expect your corporate (including in quality is by our services your the Hungarian total taxes comfort provided While the tax no general in distinguished consultant team If you place more or less in previous years, all guarantee our clients satisfied. majority our transformed in the difference.

VAT) during 2015? client engagement, excellence. observed in the on the industry in us, you will feel rate for superior changes can be service In fact, it depends has to pay more trust is only one flat highest level of of taxes. There tax, whereas the two the whether the company the new tax Consulting that & income sure stable. personal analysis Colling Accounting or less. I’m pretty income tax are tasks and their rates for corporatetaxation has basically If a Tax administration for most companies.

At BPO Audit In recent years, whether will entail costs value added taxes. like to determine taxes shifted towards company would cost applies to sectoral and extra and the same time, their a tax or administrative for companies, must invest in represent a burdendifferent kind of taxes them or not, they– and maybe in some of the huge number employees’ time more complicated. also makes business advisory services. tax code, changes in the like yours help clients Given all the the tax How can a service your corporate taxes the changes in do you expect clients deal with or less in total to pay more structure? during 2015? in administration (including VAT) entries received from The new increase companies need state year’s The amount of No demands means to the previous quick answers. taxes in proportionprimarily on economic flexible and can go forward revenue depends on the modifications successful company and carefully prepared trends, and not on January 1. Factors without a reliable Our clients can entered into force rate, inbound and advisory background.

Butkovics, CEO business experience, such as a low inflationand variations in benefit from our answer most of their Andreaare some of the more important Killik, Partner to outbound demand,have an effect on how László situation for which allows us a very short period What all in the tax more important within exchange rates for changes However, I could are some of the situation for questions that is essential businesses in 2015? tax revenues change.option provided by What of time, something in the tax new tax changes single out one and safe operation. in 2015?

A new type of 2015 prudent changes. businesses tax changes, with 2015 the in connection on the recent credit is accessibletaxpayer is entitled to Based corporate tax: The

TAX TIME JANUARY 30, 2015 – FEBRUARY 12, 2015

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BUSINESS JOURNAL HUF 1,250 | €5 | $6 | £3.5

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BUSINESS

Hungary already paid

Local luxury chain adds another hotel The local firm behind the Continental Hotel is finishing up another ambitious historical renovation and will be moving one of the city’s few Michelinstarred restaurants into its new 85-bed facility.

11 SPECIAL REPORT

Tax help needed more than ever While corporations’ taxes are not expected to grow too dramatically, those polled in our market overview of the top tax experts say that the administrative burden has grown substantially. 12-15 SPECIAL REPORT

Pálinka makers pay more; music cheaper

The government impressed the market as Hungary’s timely FX conversion spared the country the pain others felt when the Swiss franc shot up recently.

Saxo Bank’s John Hardy says the system absorbed this loss long ago. 3-4

SOCIALITE

The new tax code features a dizzying array of changes – several hundred pages worth according to experts. We take a look at some of the more unusual levies that impact a wide range of activities.

18 BUSINESS

NEWS

Getting creative with tricky local grapes

Logistics business seen to be growing

OLAF probes renewal of central Budapest

Some of our best vintners are making exciting new wines by experimenting with the impact of different soils and other variables. Their innovative approach is paying off in some delightful vintages 22

The success of the recent TRANSLOG conference is an indication of the increasing importance of the logistics business in Hungary and the greater CEE region.

08

The European Union’s anti-fraud office said it has been investigating claims of potential impropriety in public procurement for a project that improved public spaces within District 5.

05

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Budapest Business Journal | January 30 – February 12, 2015

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30 – February Journal | January

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Tax experts tell us

what to expe

tax top−ten earning We asked Hungary’s about the accounting firms you consultants and how they can help we new tax laws, and These are the answers by deal with them. ranked full list of firms, received. For a 16−17 and 20−21. part of their revenue, see pages

TAX TIME

dedicate a tax credit if they or cultural purposes sport can be payable tax to 7.5% tax credit (a maximum of realized). like yours help the tax How can a service the changes in clients deal with structure? us to work importance for in It is of utmost behalf of our clientsour together and on navigate and adviseand/ tax issues. We every tax question tax clients through in front of the or represent them to our international authority. Thanksare able to provide our we entire BDO network, company or an services to a local company group. your customers choose your Why should customers choose Why should the year of financial service over others? service going to be prepare service over others? audit and is are many high-quality Companies must in Hungary. in mid-market administration. tasks. This There and advisory firms As the leader we are able to provide with provider has a different corporate and increased administrative Partner tax advisory firms, and quality as the top for true for companies one of Every firm is especially If I had to highlight level the same services offering more activities. top service culture. industry, while would say we are of the more important and commercial for firms in the our strengths, I What are some due to our structure We know that excellence the tax code, do the tax situation flexible pricing, of experience the changes in clients to pay in costumer care. changes in clients. The Our 25 years with Given all essential for our 2015? keeps been versatility. businesses in market, coupled and you expect your corporate (including in quality is by our services your system has the Hungarian in total taxes comfort provided While the tax no general in distinguished consultant team If you place more or less previous years, all guarantee our clients satisfied. majority our transformed in the difference.

VAT) during 2015? client engagement, excellence. observed in the on the industry in us, you will feel rate for superior changes can be service In fact, it depends has to pay more trust is only one flat highest level of of taxes. There tax, whereas the two the tax whether the company & Consulting sure that the new personal income income tax are stable. analysis Colling Accounting or less. I’m pretty tasks and their rates for corporatetaxation has basically If a administration Audit Tax for most companies.

In recent years, value added taxes. At BPO whether will entail costs like to determine taxes shifted towards company would cost applies to sectoral and extra and the same time, their a tax or administrative for companies, must invest in represent a burdendifferent kind of taxes them or not, they– and maybe in some of the huge number employees’ time more complicated. also makes business advisory services. tax code, changes in the like yours help clients Given all the the tax How can a service your corporate taxes the changes in do you expect clients deal with or less in total to pay more structure? during 2015? in administration (including VAT) entries received from The new increase companies need state year’s The amount of No demands means to the previous quick answers. taxes in proportionprimarily on economic flexible and can go forward revenue depends on the modifications successful company and carefully prepared trends, and not on January 1. Factors without a reliable Our clients can entered into force rate, inbound and advisory background.

Butkovics, CEO business experience, such as a low inflationand variations in benefit from our answer most of their Andreaare some of the more important Killik, Partner to outbound demand,have an effect on how László situation for which allows us a very short period What all in the tax more important within exchange rates for changes However, I could are some of the situation for questions that is essential businesses in 2015? tax revenues change.option provided by What of time, something in the tax new operation. tax changes single out one in 2015? prudent and safe A new type of changes, 2015 the 2015 tax changes.in connection with businesses on the recent credit is accessibletaxpayer is entitled to Based corporate tax: The

BBJ STAFF

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THE EDITOR SAYS

Zsófia Siegler,

BUSINESS JOURNAL BUDAPEST B

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Local luxury chain adds another hotel The local firm behind the Continental Hotel is finishing up another ambitious historical renovation and will be moving one of the city’s few Michelinstarred restaurants into its new 85-bed facility.

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SPECIAL REPORT

Tax help needed more than ever While corporations’ taxes are not expected to grow too dramatically, those polled in our market overview of the top tax experts say that the administrative burden has grown substantially. 12-15 SPECIAL REPORT

Pálinka makers pay more; music cheaper

The government impressed the market as Hungary’s timely FX conversion spared the country the pain others felt when the Swiss franc shot up recently.

Saxo Bank’s John Hardy says the system absorbed this loss long ago. 3-4

The new tax code features a dizzying array of changes – several hundred pages worth according to experts. We take a look at some of the more unusual levies that impact a wide range of activities.

18 BUSINESS

SOCIALITE

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NEWS

Getting creative with tricky local grapes

Logistics business seen to be growing

OLAF probes renewal of central Budapest

Some of our best vintners are making exciting new wines by experimenting with the impact of different soils and other variables. Their innovative approach is paying off in some delightful vintages 22

The success of the recent TRANSLOG conference is an indication of the greater importance of the logistics business in Hungary and the greater CEE region.

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The European Union’s anti-fraud office said it has been investigating claims of potential impropriety in public procurement for a project that improved public spaces within District 5.

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Goodfriend a good friend in time of need Back in July, this column bemoaned the delay by the U.S. Senate in approving Colleen Bell as the next American ambassador to Hungary.

Shortly after that, current events forced America’s top local representative, André Goodfriend, to transform himself from a mild−mannered chargé d’affaires into a superhero, and we were perfectly happy to wait for Bell.

This is not meant as a slight against the new ambassador, but rather praise for Goodfriend – and an observation on the diplomatic process. It was nice to see someone openly condemn anti−democratic behavior. And even though diplomacy often requires a gentler approach, we can only hope that American readiness to officially criticize does not disappear.

In a period when Viktor Orbán and his government began to be more brazen about thumbing their noses at the West and cozying up to Russia – in spite of that country’s aggression in Ukraine – Goodfriend loudly and proudly promoted democracy and Western ideals.

He was pushed firmly into the spotlight after the U.S. government told some Hungarians that they were suspected of corruption and therefore could not enter the United States. Apparently because people on the list were upset, it became widely known that Ildikó Vida, head of the tax authority, was one of the officials deemed corrupt.

A diplomatic kerfuffle ensued.

With an unflappable attitude that he probably honed during his previous stint as the U.S. consul general in Syria, Goodfriend delicately parried attacks from Hungarian officials, who seemed shrill and almost hysterical in comparison.

Along with oozing class, the chargé d’affaires served as one of the few reminders available at the time that the increasingly authoritarian government was not infallible or beyond reproach. Hungarians who were annoyed with

their leadership responded with glee, and even started a fan page (www.facebook.com/andrejobarat), which boasts more than 8,000 likes.

With disagreement over Russia simmering in the background, the feud about corruption escalated to the point where Orbán insisted that Vida sue Goodfriend for defamation. There was widespread anticipation of a trial in which the best defense for the chargé d’affaires would be to prove that Vida was in fact corrupt.

Instead, Bell was approved as the ambassador, and two days after her January 19 arrival, it was announced that the U.S. would not let Goodfriend drop his diplomatic immunity, so he could not be sued. There would be no trial, Vida and Goodfriend would slip out of the news and the U.S.−Hungarian relationship would have a chance to return to a more civil level – at least in public.

This is probably for the best. Constant foreign condemnation can be wearing. Government critiques are more credible and powerful if they come from the citizenry.

Fortunately, starting with October’s demonstration against a proposed internet tax, we have seen an outpouring of domestic criticism, giving the sensation that democratic opposition is still alive in this country.

But we are far from out of the woods. Hungarian officials still take pot shots at the European Union, and Russian President Vladimir Putin is scheduled to visit Budapest for talks with Orbán in February. Putin’s economic troubles at home make him seem less capable of turning Hungary into his eurosceptic puppet within the EU, but he is sure to seek leverage.

We welcome Bell to Budapest, and we understand that she is not expected to assume the gadfly role that Goodfriend played. Still, we hope she remains ready to openly criticize the Hungarian government when criticism is warranted.

Balázs Román PUBLISHER:

Tamás Botka CIRCULATION AND SUBSCRIPTIONS: circulation@bbj.hu

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At left is a photo of the old Páva utca Synagogue in Budapest’s District 9 in 1972. Above, András Schiffer, leader of the LMP party lights a candle at the Holocaust memorial, which now occupies the same space, on January 27. Memorial events were held around Budapest on that day, the 70th anniversary of the liberation of the Auschwitz concentration camp.

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Saxo Bank analyst on forints, francs and the future 4 NEWS

EU anti−fraud office probes Budapest procurement 5

macroscope

Swiss drama: ‘Forintization’ saves the day When the Swiss franc was allowed to soar against the euro, markets around the world were rattled, but Hungary proved relatively well protected. We look at how it happened and what it means for the near future.

Although the decision by the Swiss National Bank (SNB) to remove the cap on the euro on January 15 led to large exchange rate fluctuations on forex markets, its impact on the Hungarian market was limited mainly due to the fortuitous timing of the “forintization”.

“In the wake of the Swiss developments, a lot of Hungary’s wealthiest see the revaluation of their assets because of their corporate loans,” says Blochamps Capital CEO in a note sent to the Budapest Business Journal, “while those who haven’t brought back their funds from Switzerland pop their Don Perignons together with the rich Germans, who transferred part of their private and corporate assets to Swiss banks to escape German taxes.”

As a result of the SNB’s surprise move, the currencies of the CEE countries, including the forint, depreciated sharply against the Swiss Franc. “Such a shock would have sent the forint rate falling through the floor before, but now it had only a limited – and diminishing – impact on the Hungarian currency,” OTP chief analyst Gergely Tardos tells the BBJ. Government measures aimed at decreasing and eventually eliminating forex debt have reduced Hungary’s vulnerability to such shocks. According to economy minister Mihály Varga, Hungary has been spared HUF 1 trillion of extra liabilities due to the phasing out of foreign currency denominated debt.

The official HUF/CHF exchange rate was 319.27 on the day of the SNB’s move, up from 266.33 a day earlier. Before the BBJ went to press, the forint was trading at around 315 against the Swiss franc and was strengthening against the euro, especially after the European Central Bank’s (ECB) announcement of its extended asset purchase program (also known as quantitative easing or QE) on January 22. The official forint rate against the euro reached 311.40 a day after the announcement. The ECB decided to include bonds issued by euro area central

Photo: MTI/ Tamás Kovács

GABRIELLA LOVAS

A worker at a money changer on Erzsébet tér changes the rates on a board on January 15, the day the decoupling of the Swiss franc pushed the euro up to 322 forints.

“Such a shock would have sent the forint rate falling through the floor before, but now it had only a limited – and diminishing – impact on the Hungarian currency.” governments, agencies and European institutions and increased combined monthly asset purchases to €60 billion.

Due to the perfect timing of the conversion of forex mortgage loans, for which the often−criticized Hungarian government was widely praised, the turmoil following the decision to allow the Swiss franc to float free and untethered had practically no impact on mortgage debtors of forex loans. Other countries, such as Poland and Croatia, even asked for more information on the Hungarian model for phasing out forex loans. However, not everybody would welcome such ideas.

UniCredit outgoing CEE chief, Gianni Franco Papa was cited by portfolio.hu as telling a recent Euromoney conference that he would not like to see other countries introducing similar measures.

It began with borrowers’ relief The legislation on fair banks and the forint conversion of forex and forex−based consumer mortgage loans was approved

by Parliament in November 2015, a mere

two months before the Swiss drama.

Under the scheme, exchange rates were set at CHF/HUF 256.5 and EUR/HUF 309 and thus, forex borrowers were spared incurring extra debt totaling some HUF 700 bln, according to Varga.

The remaining forex loans, mainly consumer and car loans, amount to about CHF 2 bln, which is only a fraction of the original total, says Tardos. This, together with CHF 2.2 bln in corporate loans, accounts for 3.5% of Hungary’s GDP; Hungary is among the more protected countries As for state debt, compared to 2010, the lower share of forex debt within the total has reduced the costs of servicing debt by some HUF 170 bln, said Varga. Due to last year’s debt assumption of local governments, these costs dropped by another HUF 85−90 bln. As a whole, the total amount spared for Hungary is some HUF 1 tln, he calculates.

Much ado nothing The BUX Index was down 2.36% on January 15, mainly due to a plunge of OTP shares on concerns that banks’ non− performing loans would jump due to debt other than mortgages, although the bank immediately said that it had hedged itself against the strengthening of the Swiss franc. Erste analysts say that despite the huge turmoil, the whole thing was: “Much ado about nothing, as on the Hungarian capital market Magyar Telekom and MOL has no Swiss franc exposure. OTP Bank and FHB Mortgage Bank has a CHF 1 bln and a CHF 5 million exposure, respectively.

Pharmaceutical producer Richter has some exposure what with its Swiss subsidiary and some CHF loans. On the other hand, the weakening forint helps its export sales.”

No intervention The National Bank of Hungary (MNB) confirmed in a statement released shortly after the SNB’s move that the exchange rate volatility will have only a limited effect on the Hungarian economy and financial system, as all the banks had already acquired the Swiss Francs they needed by the end of 2014. The MNB provided banks almost €9 bln from its international reserves for the loan conversion. Forex mortgage loan holders have already been paying their monthly installments at the fixed rate since January 1, 2015. The MNB pointed out that at the January 15 official rate monthly installments of CHF loan holders would have become 25% higher. This amounts to an increase of HUF 15,000 in the case of the average CHF loan holder.

The MNB said in a statement published on January 21 that in the short run, no central bank measures are necessary on the domestic investment market because of the sharp strengthening of the Swiss franc. Data submitted by investment companies and fund managers thus far show that losses exceed a combined HUF 10 bln by a few hundred investors.

Altogether ten investment funds, all absolute yield funds, lost more than 5% of their net asset value, or a combined HUF 24 bln on January 15. However, this is only approximately 0.5% of the net asset value of the entire sector.

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Budapest Business Journal | January 30 – February 12, 2015

FX pain already behind us John J. Hardy, head of forex strategy for Denmark−based Saxo Bank, visited Hungary in late January and spoke to the Budapest Business Journal about the forint, the franc and the economic outlook for Hungary.

GABRIELLA LOVAS

Q

Hungary has been widely praised for protecting its mortgage owners when the SNB decided to scrap the ceiling on the Swiss franc. What are your views on the Hungarian way of dealing with forex debt?

A: There are two ways to look at it. It’s great for Hungary that private holders of mortgages have missed out on that large move. But the mistake was made back when these mortgages were taken out. All of Hungary’s banks have paid a price up to now anyway from the resetting. But it is nice to avoid this extreme volatility and swing in price.

There are still some effects from the fact that the banks were forced to reset that price, but it is good that it has been taken care of. In Poland, for instance, there is still a large percentage of mortgages based on Swiss francs, so the debtors are still exposed to this. I expect that at some point a deal will be made in Poland that maybe involves the national bank.

Q

Poland and Croatia have shown some interest in the Hungarian model for phasing out forex debt. Do you think this could work in other countries?

Saxo’s money man: John J. Hardy.

A: There are several ways to do it, but something should be done just to get the problem behind you. Croatia has a more difficult time of it because of the size of the problem relative to its economy and to the national bank reserves. In Poland, there are plenty of central bank reserves to figure out the problem by itself.

So there are a number of ways to sort the forex debt problem out. It could be done directly with central bank funds, by a sovereign bond issuance, by partially making private individuals

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pay and partially some deal to reset this. Or it could be done the Hungarian way by forcing the banks to take most of the debt. I think it is less likely in some other countries to make the banking system take as much of a hit as in Hungary. They will probably find a less populist solution, one that splits the burden between the private and the public sector.

Q

What are the implications of the ECB’s QE decision on the Hungarian economy?

A: If you look at Hungary’s central bank policy rate versus Europe, Europe’s rate has been close to zero for a long time, while Hungary’s started up at 7% and was cut to just above 2%. So the advantage of holding the forint has reduced. But now you have not only interest rates to think about, but also you have a very large central bank easing program going on in Europe, whereas Hungary is not really doing much except for the “Funding for Growth” scheme. To me, it suggests that the forint should tend to strengthen versus the euro, as long as risk appetite is stable across Europe.

Q

How much?

A: Not dramatically. A few percent in the coming year, maybe towards 310, but I don’t have an official forecast. However, if we get a different scenario, where investors are nervous across the eurozone and they feel like that they don’t want to risk their money in Hungarian assets, it goes back towards

“You have a very large central bank easing program going on in Europe. ... To me, it suggests that the forint should tend to strengthen versus the euro as long as risk appetite is stable across Europe.” the upper region of where it is now. But I don’t see this big risk scenario for Central and Eastern Europe the way it was during the financial crisis. That was all related to the big credit bubble cycle and Swiss franc loans and worries about the quality of loans.

There are less of these types of risks now.

Q

In Hungary, the numbers are really good. But there are also downside risks.

A: If we start seeing the prospects for Hungary slide relative to Europe, there is a risk to the forint. But I also think that if Europe starts to pick up later this year that is going to feed through to Hungary and other regional economies as well. Now Hungary has a large current account surplus, which helps stability.

On the other hand, you do have a risk of a large public debt, half of which is in foreign currencies. Hungary is a bit more sensitive to this kind of thing than Poland or certainly the Czech Republic. But I don’t see any big warning signs.

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Budapest Business Journal | January 30 – February 12, 2015

NEWS

Sunday closings opposed

Cabinet stands by plan to tax solar panels Despite the critical comments of Hungary’s President János Áder, the cabinet will stand by its decision to levy an environmental protection tax on solar panels. While other countries give tax breaks to encourage the use of solar panels, Hungary’s parliament wants to levy an extra tax on the panels as old ones are toxic and require special disposal.

Government spokeswoman Éva Kurucz said on January 15 that the cabinet will continue with its plan to make manufacturers and distributors pay for the costs of handling “toxic” solar panels at the end of their “life cycle”. Kurucz said the cabinet always listened to and discussed the President’s remarks, but, aside from recognizing the usefulness of solar panels, it must also be taken into consideration that after 20−25 years they become hazardous waste. On January 12 the ombudsman for future generations said he would initiate an amendment to the law regulating environmental product fees, to make renewable energy related electric and electronic equipment exempt.

Juhász quits District 5 council committees over ‘theft’ Péter Juhász resigned from his committee positions on the council of the Fifth District, saying that he did not want to be associated with the “theft” and mishandling of the district’s property that he outlines in a document he presented to District 5 Mayor Péter Szentgyörgyvölgyi, online daily atv. hu reported on January 15. Juhász also gave the incriminating documents to index.hu, and they posted the document online. On January 14, Juhász said in an ATV broadcast that, on the basis of these documents, “Szentgyörgyvölgyi and the whole Fidesz mafi a will resign from the leadership of District 5”. Juhász has alleged that, when MP Antal Rogán was mayor of District 5, district property was illegally sold to his associates at very low prices. The documentation that he handed to Szentgyörgyvölgyi does not include names, but it does list documentation that contains names of people involved in the alleged real estate deals. Rogán denied any wrongdoing, and said that every property deal handled by District 5 officials was legal, according to index.hu. Szentgyörgyvölgyi told atv.hu that he accepted the councillor’s resignation, and added that Juhász had not contributed much to the committee’s work.

Fidesz, KDNP: Protect religious symbols against insult The European Union is not in a position to protect its member states and as such, a common, preventive strategy needs to be put in place to protect Hungarian citizens, leader of the Fidesz parliamentary faction Antal Rogán told the press after a meeting with his fellow MPs, online news portal vs.hu reported. Political correctness is no longer sufficient, Rogán added. Community values

and their symbols should be protected, since respecting an individual’s opinion is not enough; different communities deserve respect as well, according to Rogán, who said Fidesz is currently working on a proposal designed to provide this kind of protection.

Rogán also believes that law enforcement agencies or the government should be given more power, for instance, to determine who is allowed to enter the country and who is not. One of the lessons to be learned from last week’s tragic events in Paris is that the freedom of the press and freedom of speech should not include offending one’s religion, Fidesz’s coalition partner KDNP’s Péter Harrach added.

Report: HírTV to drop Fideszfriendly news Following the report that a government reorganization will create an all−news station, privately owned government− friendly news station HírTV would adopt a “mainstream” stance that includes news more critical of the government, online daily atv. hu reported on January 15. HírTV is owned

by Lajos Simicska, an associate of Prime Minister Viktor Orbán, and has received many government contracts. Atlatszo.hu reports that Simicska’s “construction fi rm Közgép... on its own and in consortia was awarded contracts to the value of HUF 93 bln” in 2014. But as Átlatszo notes: “The relationship between the two [Simicska and Orbán] has recently soured to the extent that there are signs of open confl ict in the media.”

According to atv.hu, HírTV has begun airing “mixed” news, sometimes even being openly critical of the current Fidesz government.

Now HírTV’s coverage can be expected to be even more critical, atv.hu reports. There has been speculation that the recently announced reorganization of state−owned public TV channel M1 as a solely news television station was intended as a means of creating competition with HírTV.

Hungary to launch independent data collector for utilities sector The Hungarian government decided last week that it would set up an independent entity, known as the Central Data Collection and Processing Company (KAF), to be responsible for collecting data on the Hungarian utilities sector, the Prime Minister’s Office announced on January 27. KAF is expected to help secure the country’s energy supply and to boost its efficiency while also providing answers to problems the sector has faced for decades, the statement said. The statement added that KAF would make utilities companies’ measuring and billing practices more transparent, simple and consistent. The Prime Minister’s Office said the company would be established with a share capital of HUF 100 mln and capital reserves of HUF 2.9 bln by February 28.

The Hungarian Development Bank (MFB) will exercise ownership rights over KAF and the Hungarian Energetics and Utilities Regulatory Office will oversee the operation.

Photo: MTI / Balázs Mohai

IN BRIEF

Csaba Molnár, deputy chairman of the Democratic Coalition, announces at a press conference in the metro station of Nyugati tér on January 26 that his party is collecting signatures to hold a referendum that would abolish the recently approved legislation to restrict most retailers from opening on Sundays. Sándor Demján, one of the wealthiest men in Hungary and the head of the VOSZ business association, said on January 20 that restrictions on Sunday store openings, which would go into effect on March 15, would produce a HUF 200-250 billion shortfall in government budget revenue. Economy minister Mihály Varga on January 21 rejected the estimations made by Demján. Although Varga admitted that the measure could result in a drop in retail trade turnover, he said that assuming “all Sunday turnover will be lost is nonsense”. He also disputed earlier estimates that the move would eliminate 25,000-30,000 jobs.

OLAF probes Budapest development project The European Union’s anti−fraud office, OLAF, has been screening public procurement deals connected to a refurbishment project that was approved in 2007 and took place recently in central Budapest, in an investigation of alleged fraud and irregularities, the organization told MTI on January 23. “Negotiations on the audit of the ‘Heart of Budapest Program’ are currently under way,” Felix Bubenheimer, communications office chief of the European Commission, said in response to a query from Hungarian online daily Index. He added that, until the screening is finished, no information would become public. According to MTI, the state−run news agency, “OLAF also said that it had sent its recommendations to the European Commission, as well as to the Hungarian public prosecuto’s office, but did not disclose any details of its findings”.

OLAF generally does not publish reports, but instead sends the information to the relevant authorities, attaching recommendations for any further actions. The local government of Budapest’s District 5 said they had provided OLAF with “all the necessary information”

about the program, and were not aware of any complaints regarding the project, MTI added.

The Opposition Socialists called on Fidesz fraction leader Antal Rogán, the previous mayor of the district, to inform the public about deals of the district council under his tenure.

The leftist Democratic Coalition (DK) called on Rogán to lift his lawmaker’s immunity and face an investigation. Erzsébet Gy. Németh, DK’s delegate in the Budapest Council, urged Budapest Mayor István Tarlós to assist with the investigation, and argued that, while Rogan’s district was in charge of one component of the HUF 15 bln program, the two other components were tied to the City of Budapest, controlled by Tarlós’ office. The governing Fidesz party said OLAF had screened parts of the project that had been overseen by what was then the Socialist−Free Democrat coalition− led municipality of Budapest. “The party said that projects implemented at the time by the municipality of Budapest had exceeded the costs originally calculated, whereas the two parts carried out by District 5 under Rogan’s leadership had cost HUF 300 mln and HUF 600 mln less than planned,” MTI reported. Opposition Together party urged an investigation by the chief prosecutor’s office.

BBJ

2Business COMPANY NEWS Tesco: More layoffs coming While new laws that will make hypermarkets pay higher taxes and force them to shut stores on Sunday are hurting the big three chains here, Tesco’s announced closures may have encouraged its competitors to double down on Hungary. As Tesco announced plans to close more of its stores, SPAR and Auchan announced that they are in it for the long haul, and SPAR is even planning new openings.

Tesco said will close its six units offering optician and photography services, which will in turn cause the layoff of two-dozen employees, Hungarian daily Magyar Nemzet Online reported on January 19. The closure of the units is due to be completed by mid-March.

Earlier, the company announced it would close 13 of its units, thereby causing the redundancy of approximately 500 employees (later reduced to around 150). Tesco stores have been under pressure from new competition in the chain’s home base in the UK. Meanwhile, despite speculation that grocery chain SPAR would close units, the chain said it is still planning to open three supermarkets and three units operating gas stations this year, Hungarian online daily Origo reported on January 19. The first unit is scheduled to open on January 22. Origo added that the chain has reported losses for the past couple of years, and expects to face a 20-fold growth in its supervisory fees due to the recently approved legislation.

Auchan Magyarország also said it has no intention of closing any of the 19 hypermarkets and 16 gas stations it operates in Hungary, and is planning to stay in the country in the longterm, Hungarian news agency MTI reported on January 19, citing director-general Dominique Ducoux. “The drop in revenue resulting from the Sunday ban on large retailers to come in force in mid-March is expected to even out or at least partially be recovered during the rest of the week,” Ducoux said, adding that “the company is still interpreting the new regulations and will make every effort to maintain all current jobs”. Currently Auchan employs approximately 7,000 people in Hungary including 360 disabled employees, according to the company. Some 1,350 of the 1,500 suppliers are Hungarian, Auchan says.

Richter: Further positive results on cariprazine trials Richter Gedeon on January 22 elaborated its successful tests of the antipsychotic drug cariprazine, which Budapest-based Richter is developing with Dublin-based partner Actavis. The information released by

Richter on the website of the Budapest Stock Exchange, included details about the safety of the drug, as proven in “phase IIIb” trials involving 461 patients.

“No treatment emergent adverse event was reported in more than 10% of the patients. The most frequent adverse events (incidence ≥5%) across both treatments groups were insomnia, headache, akathisia, worsening of schizophrenia symptoms, anxiety and somnolence,” the announcement said.

“We are very pleased about these positive phase III results. The preliminary data clearly demonstrates that in addition to the already shown efficacy in patients with schizophrenia and acute mania associated with bipolar I disorder, cariprazine also has the potential to become a novel promising therapeutic option for the unmet medical need of patients suffering from predominant negative symptoms of schizophrenia,” Richter’s research director Dr. István Greiner said.

One of the blue chips on the Budapest Stock Exchange, Gedeon Richter has been concerned about reduced profits due to the economic troubles in Russia, where the firm has been earning nearly one quarter of its revenue.

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WINNER OF APPRA MAGYAR! GOES TO SILICON VALLEY Last year’s crowd favorite, a traffic-assistance app proved to be the best platform-independent application at this year’s Appra magyar! developer’s contest. The winning coder will have the chance to discover Ustream’s San Francisco offices as well as the startup capital of the world.

T

he most exciting apps from the Hungarian developer community squared off against each other during the Appra magyar! – Watify Code for Success 2014 competition. The solutions honored by the professional jury are not simply good products from a technological perspective, but also perfect examples of how the digital and mobile worlds can improve our everyday lives.

Developers were invited to take part in the competition in four categories: lifestyle, entertainment, business and commerce.

Stakes were as high as ever. Category winners as well as audience favorites could delegate one member each to seven of the most prestigious technology-related conferences in Hungary in 2015. Apart from that, the winner of App of the Year could enjoy two weeks of hospitality courtesy of the US Ustream offices. During the awards ceremony, which was a part of Telenor’s Smartphone Academy (Okostelefon Akadémia) the best of the best could present themselves in front of a large audience.

The commerce category saw Barion emerge as the winner. This next-generation mobile wallet with all the official permits, senses

what kind of shop we are in as well as any other Barion users nearby, to make us forget the pains of QR codes and NFC. The winner of the business category was a professional dental record system called Flexi-dent that puts the patient at the center of its operation, to turn administration, results and X-Ray management and appointment scheduling into a pleasant part of a visit to the dentist.

The lifestyle category was conquered by a creative and ingenious language-training app, Xeropan, that uses playful and live situations in its methodology to teach foreign languages to adults and kids alike. For the time being it only works between English and seven other languages. The entertainment category was won by an app developed by a garage band of coders to entice players looking for a challenge. Their Android-based platformer, Gangsters of the Boardwalk takes players back to the U.S. of the 1920’s.

The App of the Year award was given to last year’s crowd favorite, Traffi Hunter. The developers spent many hours since last year perfecting their app, not to mention, bringing it to the Windows platform as well. This means the app can now help an even wider audience navigate and move around safely.

This year’s audience favorite was an app most welcomed by moviegoers. Mozimánia helps fans of the silver screen in that it allows them to easily order tickets, browse a massive movie database and even read an online movie magazine.

This year’s event, organized by the ICT Association of Hungary (IVSZ), supported by the National Council for Telecommunications and Informatics (NHIT) saw approximately 100 valid entries in the four categories. “We were glad to see that this year’s applicants had more teams with mature business plans and solid user interfaces and that there still are lots of original ideas in the minds of Hungarian developers,” said Dr. László Pap, member of NHIT’s council, university professor and deputy rector. “The dynamism and constant change of the app development industry is reflected in the number of mobile payment and e-commerce support applications.”

“Winning the people’s choice award last year gave us a huge boost,” said Roland Borbély,

developer of Traffi Hunter after winning this year’s award for best platform-independent application. “We rode that wave to improve our app to bring it to all mobile platforms, including the Windows Marketplace as well for drivers to download. We are glad the jury found our work to be outstanding and we hope we will be able to pick up useful knowledge from Ustream’s developers as well.”

“Microsoft is glad to stand by all initiatives that support Hungarian tech professionals and developers,” said Judit Grósz, emerging technologies executive of Microsoft, the company that originally founded Appra magyar!. “Looking at the last two years, we see the amazing potential of Hungarian developers and we aim to help them wherever possible.”

IVSZ organized Appra magyar! as part of the European Union’s Watify campaign, the aim of which is to support the emergence of enterprises based on digital technologies as well as to support the use of digital technology in other areas.

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2 Business

Budapest Business Journal | January 30 – February 12, 2015

Hungarian drugmaker Richter Gedeon also announced on January 27 that it will “commercialize and distribute” a new contraceptive patch that women can wear, under an agreement with German chemical and pharmaceutical company Bayer. The deal will involve sales of Bayer’s patch in the European Union, other European countries and also certain Latin American countries, under the Lisvy® trademark, a press release from Richter said.

Daimler begins CLA Shooting Brake production in Hungary German carmaker Daimler launched production of the CLA Shooting Brake model at its plant in Kecskemét, Hungary, Markus Schaefer, Daimler’s board member in charge of manufacturing and procurement said on January 20.

The model is the second to be manufactured exclusively in Kecskemét. The CLA Shooting Brake is now available for order with a choice of two diesel engines and four petrol engines.

The first models will arrive in showrooms in Europe in March. The plant launched production of B-Class models in March 2012 and of CLA models in January 2013. In 2014, the plant turned out a combined 150,000 B-Class and CLA models, and that number is expected to rise this year, plant director Thomas Geier said. He added that the number of Hungarian suppliers to the plant has risen from 17 at the outset to 32. Daimler has invested €1 bln in the plant thus far. At the end

of last year, it employed approximately 4,000 people. Geier acknowledged the company’s cooperation with the government, adding that the plant has received more than €90 mln in preferential export-supporting credit that will be used for additional investments at the plant.

Further negotiations are under way with the government on new “subsidies that conform to European rules”, he added.

Baumax to become XXXLutz furniture stores in Hungary Austrian-owned XXXLutz will start transforming the Hungarian stores of do-ityourself chain Baumax into furniture shops after a deadline for taking over the properties passes on April 15, the managing director of XXXLutz’s Hungarian unit told news agency MTI on January 26. A decision on how many former Baumax staff to take over will be taken once the restructuring starts. Baumax employs 788 people in Hungary, a company official told MTI earlier.

XXXLutz agreed last week to acquire 12 stores and an additional six properties from Baumax.

OKI Systems’ revenue to climb 36% in Hungary Japanese printer manufacturer OKI Systems is expecting revenue in Hungary to rise by a yearon-year 36% within its fiscal year which ends in March, Loránd Tamás, the company’s regional finance director, announced on January 22.

Tamás said that the company had introduced managed print services and is planning to sell more high-end models. In the last fiscal year, the company had revenue of more than HUF 1 bln.

Photo: MTI / János Marjai

Richter to market Bayer’s contraceptive patch

07

FROM PERSIAN GULF TO GÖDÖLLŐ Saudi Sherbiny Holdings, a family−run Saudi Arabian business in the energy industry, announced plans to establish an engineering service center in Gödöllő. The office, which is to employ 50 workers and carry out technical planning tasks related to Saudi Arabian oil and gas projects, is the business’ first office outside of the Persian Gulf region. Shown at a January 26 press conference in Budapest to announce the new office are, from left: Balázs Garamvölgyi, director of international business at Sherbiny Group; László Szabó, state secretary of the Ministry of Foreign Affairs; Mohammed Sherbiny, president of Sherbiny Holdings; Majed Sherbiny, CEO of Sherbiny Holdings and Róbert Ésik, chairman of the Hungarian Investment Promotion Agency.

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.hu The Moment When You Think of a cosy Home Are you searching for apartment? www.tecnocasa.hu EACH AGENCY INDEPENDENTLY OWNED AND OPERATED. • CONTACT US: INFO@TECNOCASA.HU

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08 2Business

Budapest Business Journal | January 30 – February 12, 2015

TRANSLOG and logistics market expand TRANSLOG Connect, the major regional event for people in the logistics business, took place at the end of November. We spoke to Dennis Lantos, managing director of TEG Group, which puts the event together, about logistics and the TRANSLOG conference.

BBJ STAFF

BBJ: What are the current and future trends of logistics and supply chain management?

D.L.: The logistics industry in CEE is experiencing substantial growth.

China and the United States remain the top sourcing locations but a new trend is emerging, as companies shift from low-cost country sourcing towards near sourcing, which puts CEE in the spotlight.

We also see a tendency that leading manufacturers and service providers are shifting from traditional to collaborative business models, but at the same time shortening contract lengths and selecting the best providers in order to reduce operational costs have become more important than ever.

BBJ: What is your overall impression about TRANSLOG Connect’s recent event?

D.L.: 2014 was a record-breaking year and TRANSLOG was a fantastic event. For example, we had the highest amount of re-bookings on the spot, e.g. Gebrüder Weiss, Raben Group and KUEHNE + NAGEL as well as many others have already signed up to guarantee their pole position for 2015.

In addition, we entered into new markets and had several new solution provider segments present. To talk numbers, more than 50% of our vendors were new compared to 2013.

Furthermore, they presented new segments like cloud-based solutions, which are becoming even more important in the CEE region.

BBJ: In your opinion, what has been the key factor for TRANSLOG becoming the market leader?

D.L.: The key for the success is to support our sponsors in reducing the sales cycle process dramatically.

We receive feedback that the decision makers we attract are, in most cases, not available for meetings and very rarely are they reachable. They are what I like to call the “difficult to reach decision makers’’. Providing a platform to reach them in a short space of time in a focused and controlled buying and selling environment results in new collaborations not just on a local level, but also on a regional and European level.

Based on direct feedback from our customers following TRANSLOG 2013, the event resulted in well over €1 billion of newly signed agreements, which is more than remarkable. In two days, the number of contacts and tangible business meetings achieved on average was at least equivalent to a 6-12 month timeframe using other alternatives.

To give you an example Achim Glass, SVP Sales & Marketing at KUEHNE + NAGEL summarized his experience

TEG Managing Director Dennis Lantos, left, at the event with Chaim Huijsman, head of corporate sales for Gebrüder Weis.

thus: “Probably one of the most effective and efficient events that I have ever attended. We will definitely come back next year.” I believe the results and the direct customer feedback speak for themselves.

Economics, one of the most popular speakers and a key supporter of TRANSLOG, highlighted the logistics performance of CEE countries within Europe and how countries compete through logistics.

BBJ: How many people/companies attended the conference? What countries were represented?

D.L.: I am extremely pleased to confirm that, besides our established markets such as Poland, Czech Republic, Slovakia, Romania, and obviously Hungary, we received a tremendous response from the Balkan region. In 2014 numerous delegates from Serbia, Montenegro, Bosnia and Herzegovina, Macedonia, Slovenia and Croatia attended. Furthermore we are attracting more and more delegates from outside the CEE region, e.g. from the UK, the Netherlands, France, Switzerland, Nigeria and Japan just to mention a few, all shaping TRANSLOG to become a truly international platform. To summarize, more than 500 senior decision makers from more than 30 different countries gathered in Budapest, which is an astonishing achievement, something I am really proud of.

BBJ: The Hungarian Government has expressed its intention to support logistics education in the country. Was this topic touched at TRANSLOG? D.L.: First of all I would like to emphasize that, since day one, the Hungarian Government has been considering TEG events as the key platform to present strategies to the industry.

Under the title “Gearshift in the Hungarian Higher Education”, it presented its strategy and, in my opinion, the following facts are the most important to mention: The government will create a system of so-called “Centers for Cooperation between Higher Education and Industry” in order to standardize and foster cooperation between the industry and universities; it is planning to transform teaching methodology to make it more practical; it plans to create an excellence-based research grant system for the most talented young professionals (the financing will go to persons instead of institutions); and the number of foreign students will be significantly increased, for the internationalization of the Hungarian institutions.

I believe the new strategy could lead to overcoming the discrepancies between the current educational output and the needs of the industry, which is unfortunately a concern not just in Hungary, but also throughout CEE.

BBJ: Please highlight the most exciting presentations and give a brief outline of their content.

D.L.: Once again, the conference program has been exceptionally well received. The topics were covered with state-of-the-art presentations by senior management representatives of big players such as TESCO, MercedesBenz, Unilever, Skoda, P&G, DANONE etc. Prof. Dr. Sebastian Kummer from the Vienna University of Business and

BBJ: Who won the 2nd CEE Logistics and Supply Chain Excellence award, and how is the award supporting the region?

D.L.: In 2014 we experienced a significant increase in the number of applications submitted, which underlines the importance of outstanding recognition in the region.

We brought the award to life to provide CEE with a platform to boost innovation, recognize exceptional achievements and to encourage logistics professionals to further strengthen the development of the region.

Flextronics won the award in the industry and retail category, and developed an integrated Supply Chain IT solution that enables the company to plan and control the whole process and to realize a high degree of automation.

CHEP, the winner in the solution provider category applied with a new quarter pallet, which, for example, allows the building of promotional platforms faster, and implementation of RFID tracking projects in a less costly way.

BBJ: Are you planning to launch a similar award during other TEG events?

D.L.: Absolutely, due to the outstanding success and feedback we have again received, TEG will hand out the first Central Eastern European Pharmaceutical Manufacturing Excellence Award during PHARM Connect 2015 in two categories – innovative and generic pharmaceutical and biotechnology manufacturers in the first one, while service providers with a customer project in the second.

This will provide a significant add on for the future development of PHARM Connect, which I am delighted to confirm has already received a large number of applications.

BBJ: When will the next TEG event take place?

D.L.: The next TEG event is just around the corner. Currently we are working on the previously mentioned PHARM Connect, the largest and most important pharmaceutical and biotechnology business summit in CEE, which will be running for the fifth time at the Corinthia Hotel Budapest in Budapest February 25-26. PHARM Connect is equal to TRANSLOG not only in volume, but in structure and professionalism as well.

More than 40 sponsors will be present; industry leaders such as GE Intelligent Platforms, FESTO, Aptar Pharma, and Finesse will have the opportunity to meet key decision makers of the pharmaceutical and biotechnology sector, such as Dr. Erik Bogsch, head of the biotechnology R&D Division at Gedeon Richter, or Dr. Joerg Gampfer, the head of process science and technical operations at Baxter. To learn more about the upcoming event and the newly established award, just visit the event website.

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2 Business

Budapest Business Journal | January 30 – February 12, 2015

09

EXPERT OPINION

EKOL grows by a factor of 10 in a year BBJ STAFF

BBJ: What was your impression of the TRANSLOG conference in Budapest? (See story on facing page.) Á.K.: This was the first time that EKOL has participated in the event; therefore we represented ourselves with a smaller stand. Now we see it was worth paying the registration fee, as we had the chance to meet 50 potential customers during the two days. At the end of the event, we confirmed our intention to take part in the 2015 conference.

BBJ: Do you think the logistics business is growing in Hungary? Á.K.: It is difficult to assess, however it is clear to see that the market is rearranging year after year. Clients seem more and more to prefer service providers offering their own solutions through low prices and long payment terms. This is true for both transport and warehousing activities. EKOL has been present in the Hungarian market for just over a year, and has gained significant results through its own sales (i.e. we did not get business as a “gift” from our mother company).

At the beginning of the year, we had 11 employees, this number has gone up to more than 100 by now, showing that there are opportunities on the market.

Bearing this in mind, we can say the logistics business is growing, or at least there are good business opportunities.

BBJ: How much has your business grown in Hungary since its foundation in 2013? Á.K.: As already mentioned, EKOL started the year with 11 employees in Hungary. We began establishing the Hungarian fleet and launching a more forceful sales campaign at the end of February. Due to this, our revenue and headcount has increased month after month, and we have managed to enter the tenders of important partners. By the end of the year, we reached a revenue of €8 million, 70% of which was achieved in the second half of the year. This is the tendency we expect in 2015, as well.

There seems to be high demand for own-truck service, so we are no longer relying mostly on the nearly 3,000 vehicle fleet of the Turkish, Romanian, Ukrainian and German parts of the company group, but also the Hungarian. For us, this also means security in terms of punctuality and the standard of services provided. All this is supported by the parent company’s high-tech tracking and reporting system, developed by the nearly 70-person R&D department. The largest part of our revenue comes from full load and groupage transportation turnover, and supporting activities such as customs clearance and cross docking have also added to it. Next year we will take significant steps in favor of developing contract logistics and the subsequent sales.

BBJ: Your business’s stated goal is to be the leader in the TurkeyHungary line. How much of the that shipping business does your company now control? Á.K.: This is one of our fundamental objectives; it also marks a higher target which is reaching a status as a Turkish distribution center. To achieve this, besides being the market leader in transportation, a modern logistics warehouse and strategic cooperation with the customs authorities is necessary. We will take large-scale steps in the latter two. With respect to transportation, based on statistics carried out by our parent company published by the Turkish transporters’ association, according to customs office data, it is clear to see that the share of EKOL has doubled in this field since the foundation of Ekol Hungary, making us market leaders in Turkey. We have one significant competitor in Hungary still ahead of us regarding the number of complete loads, but we have exceeded them in the scope of groupage and partload traffic. Therefore we are aware of our task, but we will achieve this within the boundaries of righteous and clean competition, i.e. applying normal market prices; even though the client is the most important thing, that cannot be at the expense of profitability.

BBJ: Ekol is an international company that was started in Turkey about 25 years ago. Does that give you an advantage when it comes to negotiating EU-Turkey customs issues? Á.K.: In general we can say that our Turkish “origins” don’t cause any advantages – rather the contrary. Unfortunately, there is high discrimination against Turkish transporters. In addition EKOL is new, so they are rather in a holding position and don’t yet work with us.

This is why it is crucial to remember that a failure on our side might be fatal; we are expected to deliver a flawless service. Nevertheless, EKOL now is an international company using state-of-the-art infrastructure and technology, which is also experienced by our clients. This also goes for customs issues: EKOL has the largest own customs department in Turkey (more than 200 persons), and is the first company to gain AEO status in Turkey. This means if someone would like complex service between the two countries including customs clearance, EKOL is the only solution.

BBJ: How is your firm’s overall expansion in Europe going? Á.K.: This year EKOL is present with self-owned firms in ten countries, and in co-operation with strategic partners in other countries as well. Last year we opened offices and warehouses in Barcelona and Madrid, Spain. During

Ákos Kovács, EKOL’s Country Manager.

the course of the year, Zaragoza was also launched, and soon the next hub will be Irun. Our Spanish firm shows dynamic growth, and we have also managed to establish an important cooperation with them, thanks to which 12 trucks a week operate with two drivers between the two countries carrying groupage goods, serving mainly automotive clients. The next target region would have been northern Iraq, but it has come off the agenda due to the current situation. The next offices are expected to be launched in March in Poland, which is of special importance for EKOL. In Hungary, new EKOL sites will open in Szombathely, Nagykanizsa and Kiskunmajsa in February, i.e. within weeks we are opening regional offices everywhere except the northeast of the country.

BBJ: Can you see an opportunity for expanding shipping between the EU and the oil-producing countries of the Middle East? Á.K.: This is a current issue for EKOL, since in December we signed an oil industry contract in Hungary. Cranes and trailers carrying heavy machinery are being purchased for the project starting in March. Unfortunately, only a few exports are carried out from Hungary and the CEE region to the Middle East, so setting goals sounds irrational. The mentioned operation also applies to domestic and regional countries, not just the Middle East.

BBJ: What kind of green certifications does your firm have?

How do you work to protect the environment? Á.K.: The company group has ISO 14064, ISO 14001 and Sustainability Gold level certificates (and is the only logistics company having the latter), and our Environmental Policy is a “must-read” for all of our colleagues. However, what is even more essential is the steps we make for the sake of environmental protection. Some of these are that we only use trucks with Euro 5 and Euro 6 compliant engines. If needed we also report the emission of harmful substances. Besides, four self-owned Ro-Ro vessels and 20 direct trains operating on a round trip basis, weekly transport loads of more than 1,000 complete trucks, thereby significantly reducing emissions. On our website a Bureau Veritas validated counter constantly shows the fuel savings and reduction of CO2 emissions, applied by intermodal shipping solutions instead of road traffic.

Automotive industry is one of the main customers of this service, who value these solutions. EKOL was granted the Environment Leadership Award by Daimler in 2013. The Green office degree of WWF also acknowledges this pursuit. The construction of a “green warehouse” is about to begin in the Central Anatolian region of Turkey, and a new Hungarian logistics center to be built in 2015 will have LEED qualification, meaning that environment protection will be clearly shown.

NOTE: ALL ARTICLES MARKED EXPERT OPINION ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILITY

Founded locally in 2013, the logistics firm that is seeking to take the lead in Hungary-Turkey transport has already gone from 11 employees to more than 100. Ákos Kovács, EKOL’s Country Manager, discusses his firm’s plans, and the advantages they can offer to customers.

10

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2 Business

Budapest Business Journal | January 30 – February 12, 2015

Correction The list of Tender consultants on page 110-111 of the Book of Lists 2014/2015, published by Absolut Media Zrt. contained some improper data. The company ranking has been modified here to indicate the correct data.

Please find the corrected list below:

Tender consultants

994

895 99

98 200

–

TOP LOCAL EXECUTIVE CFO MARKETING DIRECTOR

ADDRESS PHONE FAX EMAIL

2003 57 49

=VRPERU (VVĹƒV\ (100) –

Ă dĂĄm Endre (VVĹƒV\ Ă gnes KĂłrĂłdi Zsuzsa Fieszl

1139 Budapest, Pap Kåroly utca 4–6.

(1) 269-4777 (1) 354-0999 mapi@mapi.hu

2004 48 36

Gåbor Harsånyi (80), Andrås IstvånnÊ Arató (20) –

*iERU +DUViQ\L (QLNĹƒ +RUYiWK Ilona Veres

1162 Budapest, Timur utca 74.

(1) 321-1173 (1) 413-1461 info@gwconsulting.hu

–

R&D and innovation, company technology and infrastructure development, tourism investment, energy and environment protection development JĂĄsz-Plasztik Kft., Evonik Agroferm FermentĂĄciĂłipari Zrt., Ericsson MagyarorszĂĄg Kft., Csaba MetĂĄl Zrt., Philips IPSC TamĂĄsi Kft., KVV .ĹƒRODMYH]HWpNpStWĹƒ =UW

2002 27 25

OTP Bank Nyrt.

(100) –

Gåbor Tabåk – –

1134 Budapest, DÊvai utca 26–28.

(1) 412-3520 (1) 238-0981 titkarsag@otphp.hu

–

Enterprise development, Leader, job establishment invesment support, municipality development Mende municipality, GĂĄbor-Pack Kft., JĂĄsz-Terra Kft., JĂĄszok Farmja Kft., Kirner-Vill Kft.

2009 9 9

Erik Tamås (100) –

*DEULHOOD NĂŠmeth Erika Party Kinga PĂĄlinkĂĄs

1073 Budapest, KertĂŠsz utca 22.

(57) 407-794 (57) 407-794 gabi@solerte.hu

2004 4 2

Anikó Zovåth GyetvainÊ (100) –

$QLNy =RYiWK *\HWYDLQp – –

2612 Kosd, Mikes Kelemen utca 36.

(27) 200-871 (27) 200-872 info@uniotender.hu

2007 4

Krisztiån Keszthelyi (100) –

.ULV]WLiQ .HV]WKHO\L – –

*|G|OOĹƒ SzabadsĂĄg tĂŠr 12–13.

(70) 341-7924 (28) 420-590 info@emva.hu

EuroDeal Holding Kft.(), Attila Istvån Som (70) –

GĂĄbor AndrĂĄs 3HWĹƒ 6]DEROFV KustĂĄn – –

1115 Budapest, Bartók BÊla út 105–113.

(1) 666-3750 (1) 666-3749 info@multicontact.eu

Adriån Ajkay (100) –

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9700 Szombathely, Ă rpĂĄd Ăşt 39.

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Attila Veres (85), Lajos Veres (10), Ibolya Krisztina Kovåcs (5) –

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2 Business

Budapest Business Journal | January 30 – February 12, 2015

11

New luxury hotel to open in April The Prestige Hotel Budapest is to incorporate Costes, the first restaurant in Budapest to win a Michelin star.

BBJ STAFF

A 19th century townhouse designed by famous Hungarian architect József Hild and located on District 5’s Vigyázó Ferenc utca is being converted into the Prestige Hotel Budapest, an 85-room luxury facility set to open in April, adding a third hotel to the properties of ZeinaHotels, a local chain of fourstars. The hotel will become the new home of Costes, the first restaurant in Budapest to earn a Michelin star, and still one of only three in the capital holding that honor, the owner said.

The property alone cost approximately €10 million, according to Kitti Varga, ZeinaHotels spokeswoman, and the renovation should add a good bit to the price tag. ZeinaHotels’ other venues are also in District 5: the Continental Hotel Budapest, built in a spectacularly renovated fin-de-siècle bathhouse, as well as the 74-room Boutique Hotel Budapest. As with these establishments, renovation of the Prestige Hotel is being handled by architect Péter Hegedűs, and interior designers Virág Vörös and Csilla Sáfrány.

With its wellness center and range of uniquely designed rooms, the Prestige Hotel is aiming for the luxury market, and yet the prices of properties in the chain are mid-range.

The rooms at the Continental typically run from €100 a night for a standard room, up to €150 for an executive room. Reasonably priced luxury is apparently the chain’s business model.

“As far as I know from the market, we offer the best value for money in the fourstar and four-star-superior hotel segments and our policy is to give good service at a good, affordable price to our guests,” Varga said

The lobby at the Prestige Hotel.

The hotel chain is owned by Mazen Ramahi, who used to work for Mellow Mood – a hotel chain that features a range of properties like the high-end Buddha Bar Hotel and is run by two long-term expats who originally came from Jordan. Like Mellow Mood’s owners, Ramahi seems to have the cash to invest up-front, as he lists no partners. This approach allows him to take the long view on properties, and apparently makes it easier to charge lower rates for luxury.

While the Budapest hotel market may seem heavily built up, Varga said Ramahi believe there is room for growth here. “Budapest is a beautiful city, full of attractive places; it is famous for its baths

Construction underway.

Mazen Ramahi.

and night life. Most of the tourists here are the leisure ones at the moment,” she said. “However, on the other hand, the hotel market in Budapest can be widened if we concentrate on other

kinds of tourism as well, and utilize the business and conference markets. I think the future of tourism in Budapest is to concentrate on business and conference travelers.”

Commercial property has good year Both CBRE and C&W saw investments in Hungary rise by more than 70% in 2014.

Romania is another market worth watching.

DAVID LAWRENCE

A notable recovery in commercial property investment volume for 2014 has been recorded in CEE with significant growth figures for Hungary and Romania, a trend that is continuing into this year. However the more cautious German institutional investment funds are still focusing on Poland and the Czech Republic, which continue to dominate CEE investments. According to CBRE, Poland is the fourth most attractive country in Europe for commercial property investment after the United Kingdom, Germany and Spain.

CBRE Group, Inc. says the firm recorded more than €7.7 billion in commercial property investment activity in CEE for 2014. Hungary recorded €466 million in investment transactions for the year, representing a 71%

year-on-year increase compared to Poland with €3.076 bln (representing a 5% y.o.y. growth in activity) and €1.992 bln for the Czech Republic (a 54% rise in investment).

Romania recorded a massive 220% increase in investment activity with €1.124 bln recorded for the year.

Key change “The key change in CEE in 2014 was the marked increase in investment activity outside Poland, specifically in Hungary, Romania and Slovakia,” commented Mike Atwell, Head of CEE Capital Markets at CBRE. “As new investors focus their sights on the region, the more opportunistic of these are placing their capital further afield, partly to generate higher income returns but also due to lack of available stock in Poland.

We expect this trend to continue, with Hungary and Romania benefitting the most from this investor diversification.”

Growing CEE investment activity was also seen at Cushman & Wakefield (C&W), where the firm’s total CEE investment activity in 2014 was put at more than €7.3 bln for Hungary, Poland, the Czech Republic, Slovakia and Romania. This figure reflects a 41% increase on the previous year and is approaching the firm’s record of €9.3 bln achieved in 2007. According to the figures, Hungary recorded €616 mln in commercial investment volume, representing a 73% y.o.y. increase. Unsurprisingly, Poland recorded the highest volume at €3.13 bln, a slight increase on the previous year. Romania recorded a massive 141% rise in volume with €1.07 bln transacted and Slovakia achieved a 116% rise with €504 mln of activity.

“Central Europe has become an established part of any pan-European investment strategy,” said James Chapman, Head of CEE Capital Markets at C&W. “Warsaw has been the gateway for this but activity is clearly growing rapidly in secondary cities and across all Central European countries.”

What is noticeable for Hungary is the increasing role of local investment funds such as the Erste Open-end Real Estate Investment Fund and the open-ended Torony Real Estate Investment Fund managed

by Diófa Fund Management. This could provide a cushion from the fluctuations of international investor sentiment.

Further investment growth across Central Europe is predicted for 2015 with further yield compression. The office sector is expected to be the leading investment destination, followed by retail, and then industrial.

12

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Budapest Business Journal | January 30 – February 12, 2015

BBJ

3Special Report

Tax experts tell us what to exp We asked Hungary’s top−ten earning tax consultants and accounting firms about the new tax laws, and how they can help you deal with them. These are the answers we received. For a full list of firms, ranked by revenue, see pages 16−17 and 20−21.

BBJ STAFF

BDO Hungary

a tax credit if they dedicate part of their payable tax to sport or cultural purposes (a maximum of 7.5% tax credit can be realized).

How can a service like yours help clients deal with the changes in the tax structure?

It is of utmost importance for us to work together and on behalf of our clients in tax issues. We navigate and advise our clients through every tax question and/ or represent them in front of the tax authority. Thanks to our international BDO network, we are able to provide our services to a local company or an entire company group.

Zsófia Siegler, Partner What are some of the more important changes in the tax situation for businesses in 2015?

While the tax system has been transformed in previous years, no general changes can be observed in the majority of taxes. There is only one flat rate for personal income tax, whereas the two rates for corporate income tax are stable.

In recent years, taxation has basically shifted towards value added taxes. At the same time, sectoral and extra taxes represent a burden for companies, and the huge number of different kind of taxes also makes business more complicated.

Given all the changes in the tax code, do you expect your corporate clients to pay more or less in total taxes (including VAT) during 2015?

The amount of state entries received from taxes in proportion to the previous year’s revenue depends primarily on economic trends, and not on the modifications entered into force on January 1. Factors such as a low inflation rate, inbound and outbound demand, and variations in exchange rates all have an effect on how tax revenues change. However, I could single out one new option provided by the 2015 tax changes. A new type of tax credit is accessible in connection with corporate tax: The taxpayer is entitled to

Why should customers choose your service over others?

As the leader in mid-market audit and tax advisory fi rms, we are able to provide the same services and quality as the top fi rms in the industry, while offering more flexible pricing, due to our structure and versatility. Our 25 years of experience in the Hungarian market, coupled with our distinguished consultant team and superior client engagement, all guarantee the highest level of service excellence.

BPO Audit Tax

László Killik, Partner What are some of the more important changes in the tax situation for businesses in 2015?

Based on the recent changes, 2015

is going to be the year of fi nancial administration. Companies must prepare for increased administrative tasks. This is especially true for companies with commercial activities.

Given all the changes in the tax code, do you expect your corporate clients to pay more or less in total taxes (including VAT) during 2015?

In fact, it depends on the industry whether the company has to pay more or less. I’m pretty sure that the new tax administration tasks and their analysis will entail costs for most companies. If a company would like to determine whether a tax or administrative cost applies to them or not, they must invest in their employees’ time – and maybe in some advisory services.

How can a service like yours help clients deal with the changes in the tax structure?

The new increase in administration demands means companies need flexible and quick answers. No successful company can go forward without a reliable and carefully prepared advisory background. Our clients can benefit from our business experience, which allows us to answer most of their questions within a very short period of time, something that is essential for prudent and safe operation.

Why should customers choose your service over others?

There are many high-quality service provider and advisory firms in Hungary.

Every firm has a different corporate and service culture. If I had to highlight one of our strengths, I would say we are top level in costumer care. We know that excellence in quality is essential for our clients. The comfort provided by our services keeps our clients satisfied. If you place your trust in us, you will feel the difference.

Colling Accounting & Consulting

Andrea Butkovics, CEO What are some of the more important changes in the tax situation for businesses in 2015?

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TAXES

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Budapest Business Journal | January 30 – February 12, 2015

A sampling of changes in the tax code

18

Tax software, helps, but it can’t do it all

19

xpect, and how they can help Our clients are professionally serviced in a friendly, supportive environment. The speedy, updated, authentic information, processed in line with high standards but also in an “understandable language” gives our partners an advantage over the competition.

Because at Colling, everyone counts.

Process Solutions

How can a service like yours help clients deal with the changes in the tax structure?

We warn our clients up-front about what is coming and help them address challenges in due course, so that they will not be caught off guard, like their competitors, when they have to adopt changes.

Why should customers choose your service over others?

We are flexible and can adapt our service offerings, within accounting, tax and payroll, to any new requirements (e.g. assistance with EKAER) from our clients that are triggered by the increased administrative burden and the rapidly changing legislation.

TMF Group

András Szalai, Managing Director, Partner

One of the most important changes within the system of corporate taxation is the extension of the affiliation relationship, according to which the concept of affiliated enterprises also includes situations when decisive influence is realized regarding the business and financial policy of the economic enterprises through same-person management of the associated parties.

A noteworthy change in the domestic summary report, is that the itemized VAT data-submission limit is reduced to HUF 1 million (from HUF 2 mln). From now on taxpayers can also submit data of transactions that have VAT amounts that are lower than this limit – which means taxpayers can practically send their entire VAT analytics to the tax office.

The most important change in the law on the rules of taxation is the introduction of the so-called EKAER-system, and its supervision by the tax department. The point of the system is that any transport of goods via public roads made with a vehicle that is subject to toll requires possession of a NAV-issued control number. Those involved in transporting goods have to provide data to NAV both before the start of deliveries (loading) and also at the completion of deliveries (unloading).

Given all the changes in the tax code, do you expect your corporate clients to pay more or less in total taxes (including VAT) during 2015?

The amount of tax payable can depend on many criteria. A higher tax liability can be an indication of the growth of the business, which is a positive thing – most of our clients fall into this category.

Given the existing tax laws, the most important thing is to comply with the current regulations, since the more strict tax authority controls and increasing penalty limits can cause extra obligations.

The introduction of the EKÁER system also means extra administrative costs for companies dealing with transportation – the additional workload requires one extra full-time employee.

How can a service like yours help clients deal with the changes in the tax structure?

The 2015 tax changes increased the necessity for a more professional finance and accounting support staff.

By monitoring our client’s processes, we can show them where and how they can operate more tax-effectively, and where there are dark zones on their tax-map.

Some of our partners wish to see incomes and costs separated by activities. We also make it possible to view accounts via remote desktop access, so that clients can freely and directly check reports, in foreign languages too.

Why should customers choose your service over others

What are some of the more important changes in the tax situation for businesses in 2015?

We are of the view that overall there have been no fundamental changes for this year apart from measures introduced to target specific sectors, but the average business will only have to face the usual minor (though mostly unfavorable) changes.

To name one single measure that made a real impact we would pick one that is not closely connected to taxation: the introduction of the EKAER system (vehicle tracking for trucks) stole the show for 2015. Of course, much of the commotion has been due to the short notice on which the system has been implemented, but this is also something the industry seems to be getting used to. Clearly this change has been the one where our clients have required our assistance the most in interpreting the regulations.

Given all the changes in the tax code, do you expect your corporate clients to pay more or less in total taxes (including VAT) during 2015?

Clients coming from specific sectors will likely pay more taxes from this year.

Actually in the absence of significant tax increasing measures, it is not necessarily the clients, but rather we, the service provider, who will feel the crunch in the first place. With the system becoming more fuzzy, and the overall administrative burden reaching new heights every year, we have to devote more and more of our resources to be able to deliver the same level of service quality and ensure compliance for our clients.

Ákos Nagy, Business Development What are some of the more important changes in the tax situation for businesses in 2015?

The change with the most immediate impact on our clients’ tax compliance would be the introduction of the new Electronic Road Transportation Control System (EKAER), which will be run on a trial period until March 1. Other important changes include updates on the taxation of flexible benefits (such as food vouchers), the change in the definition of place-ofsupply of services provided remotely, an updated definition for associated companies, extended VAT reporting requirements and the limits on the utilization of losses carried forward.

These are the changes that affect most Hungarian businesses, while retail, tobacco and other sectors also face special taxes.

Given all the changes in the tax code, do you expect your corporate clients to pay more or less in total taxes (including VAT) during 2015?

As for the general changes, we do not expect that the amount of

➜

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Budapest Business Journal | January 30 – February 12, 2015

our clients to operate their corporate structures, finance vehicles and investment funds in different geographical locations. TMF Group has more than 20 years of experience in Hungary and a team of more than 60 specialists in HR and payroll, accounting and tax, and corporate secretarial areas, to keep you compliant with Hungarian regulations.

UCMS Group Hungary

taxes paid by our clients will significantly change. However, this excludes sectoral taxes, such as those impacting tobacco or retail. The changes will lead to more complex reporting and administrative burdens, so many companies might start to outsource tax reporting to corporate service providers.

How can a service like yours help clients deal with the changes in the tax structure?

Outsourcing tax compliance helps companies to simplify their operations.

Service providers, such as TMF Group, ensure that the businesses are compliant ADVERTISEMENT

with the rapidly changing Hungarian tax law. We have local experts and work with the leading tax advisors in more than 80 countries worldwide to implement changes in the tax structures.

Balázs Z. Nagy, Sales Director Why should customers choose your service over others?

TMF Group is a leading global provider of high-value business services to clients operating and investing globally. We are operating in more than 80 countries and focus on providing specialized and business-critical financial and administrative services that enable

What are some of the most important changes in the tax situation of businesses in 2015?

The 2015 tax amendments are mainly focused on changing the details of the currently existing provisions. Among other changes, there are newly introduced regulations on the corporate income tax law in connection with the innovation tax allowance, and new regulations related to the support of sport and higher education.

There are also important changes in the deferral of tax loss and the defi nition of affi liated entities. As for the value added tax, the reverse charge mechanism has been extended to temporary employment services from January. Furthermore, the main changes in personal income tax concern tax allowances and the system of non-wage benefits. The scope of the non-wage benefits remained the same in 2015, however their preferential tax limit was decreased from HUF 500,000 to HUF 200,000 with the exception of benefits provided by the Széchenyi Holiday Card, which has an annual limit of HUF 450,000. The support of families is still pretty important, therefore in addition to the current allowances a new tax allowance – called the fi rst marriage tax allowance – has been introduced.

These changes have come into effect with a lack of practical interpretation advice, which will pose a challenge for service providers in 2015.

Given all the changes in the tax laws, do you expect your corporate clients to pay more or less taxes (including VAT) during 2015?

We expect clients’ administrative tasks to increase, while their tax burden remains the same. For instance a new tool against VAT fraud has been introduced by the government, the EKAER system. From its implementation, only EKAER registered road transportation companies will be able to continue their activity. Another solution, the introduction of domestic itemized reporting of invoices with a VAT value over HUF 2 mln in 2013 was also an attempt to reduce VAT fraud. This value limit has been decreased to HUF 1 mln

as of 2015, which also means a further administration burden for businesses.

How can a service like yours help clients handle the changes in the tax structure?

Predictability is the key of successful business planning. However, since tax law is a continuously changing field in Central and Eastern Europe, it is a huge challenge to remain up-to-date. Here is some interesting data to illustrate this fact: In 2014, some 777 new acts (laws, regulations) were introduced. That means about 18,214 pages, which is 12 times the size of Leo Tolstoy’s War and Peace (1,488 pages in the Hungarian language).

This is a remarkable amount to read and understand, and requires practical experience to implement. Service providers have to be a step ahead, and as a part of the client’s team, have to attend proactively with advice in order to sustain a solid base for decisions that allow clients to reach their financial goals.

Why should customers choose your service instead of others?

Potential customers require comprehensive solutions. They are seeking an administration system that is able to serve them, not only in daily transaction processing and compliance, but also by providing continuous advisory services and a reliable basis for their decisions. They need a system that is available for them anytime and anywhere. Although the process is technology- based, we believe that the key to success is to find the best people and train them on the widest scale – professionally and in soft skills as well – in order to provide specialized account management to clients.

We strive to provide not just a high quality service, but also a client-centric and innovative administration ecosystem, with our accounting, payroll, HR administration and advisory services.

VGD Ferencz & Partner

Andrea Kuntner, Tax partner What are some of the more important changes to the tax situation for businesses in 2015?

There were no significant changes in the existing tax system this year but we have some important changes in the regulations with possible significant effects on the taxpayer’s business results.

Some of them are: Corporate income tax: An important change regarding the use of carried− forward losses is that taxpayers will be able to use annual losses generated in 2015 and thereafter no later than the fifth tax year following the year when

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How can a service like yours help clients deal with the changes in the tax structure?

As mentioned above, tax administration increases, and taxpayers have to deal with new challenges and more rigourous tax inspections. We are ready to help the taxpayers in this rapidly changing environment, and to undertake the increased tax tasks on behalf of them. More importantly, we can provide them with practical advisory services, to achieve a better tax structure, and represent them in front of the tax authority.

Why should customers choose your service over others?

Instead of pre−fabricated solutions and lengthy expert opinions limiting responsibility, we provide our clients with clear and concise advice that can be implemented in practice. We possess major experience in expat services, VAT issues and preparing transfer pricing documentation with the help of the Amadeus system. Additionally, assisted by the WTS alliance that has its headquarter in Munich, we can help our clients establish contacts with almost every main economic and financial center in the world.

Budapest Business Journal | January 30 – February 12, 2015

the loss was generated. As a temporary rule, losses generated in 2014 or before can be carried forward until 2025 at the latest.

The definition of related parties now also includes entities where executive management is the same and therefore has dominant control over the business and financial policies of the entities, even if no majority influence is observable in the ownership structure.

VAT: The scope of transactions under the domestic reverse−charge mechanism will be increased as of January 1. According to the new rules, the reverse−charge mechanism will now apply to all forms of labor−hire services, not only to labor−hire services for the supply of properties and to construction/engineering businesses that are already subject to the reverse− charge mechanism. The domestic reverse−charge mechanism will also be introduced for the supply of certain iron and steel products as specified in the VAT act.

Administration: A new reporting system called EKAER (Electronic Control System of Road Transport) was implemented regarding road transportation from January 1.

According to the relevant regulations, the obligation for registration in the EKAER system will be performed by taxpayers carrying out transactions where the goods are transported by road and the transportation is subject to road− toll payment.

Given all the changes in the tax code, do you expect your corporate clients to pay more or less in total taxes (including VAT) during 2015?

We expect that the general, profitable taxpayer has to pay less taxes on the corporate tax level because of the new deduction opportunities, but specific taxpayers (e.g. food chains, financial institutions) will have increased tax liabilities.

The general VAT rate remains the same (27%), but some sectors can make use of decreasing VAT rates and the extension of the reverse-charge mechanism.

However, our clients have to face increasing administration obligations in their daily business life (extended VAT declarations, more detailed transfer pricing rules, the new reporting system concerning road transport, etc.) together with multiplied tax controls and penalties.

How can a service like yours help clients deal with the changes in the tax structure?

In order to run a company, it is necessary to monitor closely the rapidly changing laws on accounting, fiscal matters and corporate law. VGD helps clients by giving to-the-point tax, audit and accountancy advice.

Our clients will have access to a single point of contact who can quickly mobilize dedicated teams and share resources on your behalf. Our professional team of auditors, accountants, tax consultants, lawyers and other experts offer clients custom-made, full-scale solutions.

Why should customers choose your service over others?

Both local and international corporate clients increasingly seek to obtain across-the-board professional services

from a single service provider. VGD Group is a professional service provider with 600 professionals working through 24 practices in 11 countries across Europe. The group’s Hungarian practice delivers a wide range of financial services to its clients, from accounting and auditing through transaction and tax advisory services to transfer pricing solutions.

The VGD Group is a member of the highly acclaimed international Nexia network, ranking in the top-ten of the world list of international networks of accountants and tax consultants.

The partnership with VGD enables us to provide international expertise on a local level and to optimize the financial dimensions of our clients’ businesses.

WTS Klient

Zoltán Lambert, Partner What are some of the more important changes to the tax situation for businesses in 2015?

Changes to tax laws are listed in a 200-page-long document, and it is really hard to choose a few of them.

We now have new strict rules that will make life riskier for those who are involved in tax evasion. However, taxpayers who always complied with tax laws will look at these new rules as stumbling blocks, and administration and penalty exposure will definitely increase. For example, transportation without the new Electronic Public Road Transportation Control System number means that products will be considered to be of unverified origin, enabling the National Tax and Customs Administration (NAV) to impose default penalties of up to 40% of the value of the goods in question.

Penalties may be imposed after January 31. Transfer pricing documentation rules were also tightened.

Given all the changes in the tax code, do you expect your corporate clients to pay more or less in total taxes (including VAT) during 2015?

There were no fundamental changes in the tax rates. VAT remained the highest in the European Union and the general corporate income tax or personal income tax rates remained unchanged, with some beneficial changes in the personal income taxes concerning families. The introduction of certain new taxes (e.g. advertisment tax), or the increase in the food−chain supervisory fee will cause headaches for some companies, since these taxes are based on the net sales revenue and will erase their profits.

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WTS Klient. The Bridge. www.klient.hu The WTS Klient Group won the Hungarian Quality Product Award in 2014 regarding cross border accounting and tax services.

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Budapest Business Journal | January 30 – February 12, 2015

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ACCOUNTING

AUDITING

TOTAL NET REVENUE (HUF MLN) IN 2014 1,000

Tax, social security, labor law and accounting consulting, representation in front of tax authority, labor due dilligence, corporate due dilligence, preparation of self control, preparation of transfer price registration

–

YEAR ESTABLISHED NO. OF FULL-TIME EMPLOYEES ON JAN. 1, 2015

2

SALDO PÉNZĂœGYI TANĂ CSADĂ“ ÉS INFORMATIKAI ZRT.

OTHER SERVICES

MAJOR CLIENTS IN 2014

1

COMPANY WEBSITE

NET REVENUE FROM TAX CONSULTING IN 2014 (HUF MLN)

RANK

Ranked by net revenue from tax consulting in 2014 (HUF mln)

OWNERSHIP (%) HUNGARIAN NON-HUNGARIAN

TOP LOCAL EXECUTIVE CFO MARKETING DIRECTOR

ADDRESS PHONE FAX EMAIL

Âť

1959 80

(100) –

PĂĄl Bokor GĂĄbor Imre JĂĄnos Tancz

1135 Budapest, Mór utca 2–4.

(1) 237-9877 (1) 237-9811 info@saldo.hu

Âť

2001 65

(100) –

Zsolt Kalocsai KlĂĄra Vaitz Edina VĂĄradi

1138 Budapest, Faludi utca 3.

(1) 886-3700 (1) 886-3729 info@rsmdtm.hu

Individuals (100) –

ZoltĂĄn Lambert, TamĂĄs GyĂĄnyi Andrea PotĂĄssy ViktĂłria Szendrei

1143 Budapest, Stefånia út 101–103.

(1) 887-3700 (1) 887-3799 klient@klient.hu

www.rsmdtm.hu

WTS KLIENT ADĂ“TANĂ CSADĂ“ KFT. www.klient.hu 3

305

305

–

–

–

–

–

Âť

2011 17

304

2,155

IT consulting, shared services consulting, ÀQDQFLDO VHFWRU WHPSRUDU\ employment

Âť

1989 13

(100) –

Zoltån Gerendy, Gåbor KertÊsz, =VyÀD 6LHJOHU – –

1103 Budapest, .ĹƒpU XWFD $ & EXLOGLQJ (1) 235-3010 (1) 266-6438 RIĂ€FH#EGR KX

2005 8

*iERU 'pQHV

)HUHQFQp :HVVHO\ (40), Boglårka %HUpQ\L -XGLW :HVVHO\ 6LPRQ\LQp (10) –

Gåbor DÊnes – –

1118 Budapest, AlsĂłhegy utca 27.

(1) 382-0106 (1) 382-0107 tax@forbis.hu

2001 10

GyĂśngyi Ferencz (Âť), Erik Thurn (Âť), Andrea Kuntner (Âť) &9%$ 9(*('( (Âť)

*\|QJ\L )HUHQF] Andrea Kuntner, Erik Thurn – –

1134 Budapest, VĂĄci Ăşt 33.

(1) 225-7575 (1) 225-7574 vgd.budapest@vgd.hu

Âť

2001 46

(100) –

Szilvia 6DUNDGL 1DJ\ Ildikó Miszori, Låszló Killik, ÉJQHV .iVD )RUJiFV &VLOOD %|JUH –

1146 Budapest, =LFK\ *p]D XWFD (1) 422-1339 (1) 688-4869 info@bpokft.hu

Âť

2002 49

– Oriolo Holdings Ltd. (100)

*\|UJ\ 3LQWpU Gåbor à dåm Gåbor Kis –

1062 Budapest, Aradi utca 16. II. em. 2.

(1) 345-0092 (1) 345-0093 ÀQDFRQW#ÀQDFRQW FRP

BDO HUNGARY (TAX CONSULTING) www.bdo.hu 4

5

FORBIS ADĂ“TANĂ CSADĂ“ KFT. www.forbis.hu

112

112

–

–

–

–

–

–

International VAT and excise tax reimbursement

–

Transfer price documentation, tax UHSUHVHQWDWLRQ ÀQDQFLDO and tax due dilligence

Âť

VGD FERENCZ & PARTNER KFT. www.vgd.eu 92

6

7

BPO AUDIT TAX

8

FINACONT SZOLGà LTATÓ ÉS TANà CSADÓ KFT.

www.mgi-bpo.hu

83

77

221

427

553

ZZZ ÀQDFRQW FRP

–

–

–

–

–

–

Financial management, reporting & controlling, ÀQDQFLDO DGPLQLVWUDWLRQ HR administration and recruitment

Âť

Accounting Tax advising HR outsourcing Transfer pricing 7HO

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YEAR ESTABLISHED NO. OF FULL-TIME EMPLOYEES ON JAN. 1, 2015

MAJOR CLIENTS IN 2014

OTHER

PROPERTY CONSULTING

HR CONSULTING

FINANCIAL CONSULTING

PAYROLL ACCOUNTING

ACCOUNTING

OTHER SERVICES

AUDITING

TOTAL NET REVENUE (HUF MLN) IN 2014

NET REVENUE FROM TAX CONSULTING IN 2014 (HUF MLN)

RANK

COMPANY WEBSITE

17

3

Budapest Business Journal | January 30 – February 12, 2015

OWNERSHIP (%) HUNGARIAN NON-HUNGARIAN

TOP LOCAL EXECUTIVE CFO MARKETING DIRECTOR

ADDRESS PHONE FAX EMAIL

1132 Budapest, Våci út 22–24.

(1) 412-3530 (1) 412-3530 erzsebet.antretter@ accace.com

ACCACE INTERBOOK KFT. www.accace.com, www.tulipize.com 9

10

71

0(02/8; 6=(59(=ł )(-/(6=7ł ÉS SZOLGà LTATÓ KFT.

66

270

–

450

–

–

–

78/,3 &ORXG VHUYLFHV

Âť

1996 21

IstvĂĄn Nemecz (30) $&&$&( /WG

Istvån Nemecz – Masoud Tajik

–

–

$'3 $P&KDP $PJHQ %&&+ (0& (XURVFULSW Masso

1989 48

(100) –

Istvån Rajkai -y]VHIQp .XOLIDL –

1142 Budapest, (U]VpEHW NLUiO\Qp ~WMD (1) 460-7412 (1) 460-7490 mlx@memolux.hu

Âť

1995 9

3pWHU %HUJPDQQ

3pWHUQp Bergmann (50) –

3pWHU %HUJPDQQ 6iQGRU 6ROWpV] 'yUD .UpQ

1138 Budapest, VĂĄci Ăşt 186.

(1) 238-9050 (1) 238-9060 bergmann@bergmann.hu

Âť

1992 16

Tßnde Gulyås (50), Andrea Butkovics (50) –

Andrea Butkovics (UQĹƒ 9DUJD 0HOLQGD 1pPHWK

1138 Budapest, VĂĄci Ăşt 141.

(1) 452-6900 – RIÀ FH#FROOLQJ KX

1995 9

Zsolt Ruszin (50), Veronika Antal 5XV]LQQp

–

Zsolt Ruszin – –

1097 Budapest, KÜnyves Kålmån kÜrút 12–14.

(1) 238-8023 (1) 238-8024 fairconto@fairconto.hu

à gnes Vilmånyi () , Gabriella Szinay 5RV]NRSIQp ) –

ÉJQHV 9LOPiQ\L – –

1051 Budapest, HercegprĂ­mĂĄs utca 21.

(1) 312-2222 (1) 354-0947 info@drvilmanyi.hu

József Dencsi (90), Tibor Dencsi (10) –

József Dencsi, Tibor Dencsi – –

1119 Budapest, )HKpUYiUL ~W (1) 209-6448 (1) 209-6448 balance@balancekft.hu 1068 Budapest, 'y]VD *\|UJ\ ~W & (1) 428-6800 (1) 428- 6801 deloitteinhungary@ deloittece.com

–

www.memolux.hu

%(5*0$11 .g1<96=$.e57Ĺ&#x201A; e6 ADĂ&#x201C;TANĂ CSADĂ&#x201C; KFT. 48

146

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

Tax consulting, tax planning, management consulting, M&A, due diligence

37

124

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

Transfer price consulting, cafeteria consulting, cafeteria operation

www.bergmann.hu 11

COLLING ACCOUNTING & CONSULTING KFT. www.colling.hu 12

13

FAIRCONTO ZRT.

34

www.fairconto.hu

172

Âť

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

Representation in tax audits, Hungarian tax planning, liquidation procedures, representation in tax fraud, VAT refund

Âť

â&#x20AC;&#x201C;

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'5 9,/0Ă&#x2030;1<, $'Ă?6=$.e57Ĺ&#x201A; IRODA KFT. www.drvilmanyi.hu, www.drvilmanyi.eu

22

14

15

BALANCE KFT.

15

www.balancekft.hu

DELOITTE Ă&#x153;ZLETVITELI Ă&#x2030;S NR VEZETĂ&#x2030;SI TANĂ CSADĂ&#x201C; ZRT. www.deloitte.hu

22

â&#x20AC;&#x201C;

166

Âť

Âť

Âť

11,800(2)

Âť

(3)

â&#x20AC;&#x201C;

(1) (1)

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

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Transaction advisory, business advisory, tax advisory

2013

Âť

1990 24

Âť

1990 260

â&#x20AC;&#x201C; (100)

GĂĄbor Gion, Attila KĂśvesdy Gerard Lucey .ULV]WLQD 1pPHGL

Âť

1989 557

â&#x20AC;&#x201C; Ernst & Young &HQWHU &OXVWHU Limited (100)

IstvĂĄn Havas &VDED +RUYiWK Eszter JĂĄkĂł

1132 Budapest, VĂĄci Ăşt 20.

(1) 451-8100 (1) 451-8199 mailbox.ey@hu.ey.com

KPMG HungĂĄria Kft. (99) KPMG Hungary Holdings Ltd (1)

5REHUW 6W|OOLQJHU :LOOLDP &XUOH\ MiklĂłs Scheibelhoffer

1134 Budapest, VĂĄci Ăşt 31.

(1) 887-7100 (1) 887-7101 info@kpmg.hu

Individuals (3) Mazars S.A. (97)

Philippe Bruno Michalak â&#x20AC;&#x201C; â&#x20AC;&#x201C;

1123 Budapest, Nagyenyed utca 8â&#x20AC;&#x201C;14.

(1) 429-3010 (1) 235-0481 mazars@mazars.hu

â&#x20AC;&#x201C; 3Z& &((

Nick KĂłs, 7DPiV /Ĺ&#x192;FVHL TamĂĄs PĂĄl BorbĂĄla Palotai

1055 Budapest, Bajcsy-Zsilinszky Ăşt 78.

(1) 461-9100 (1) 461-9101 info@hu.pwc.com

ERNST & YOUNG TANĂ CSADĂ&#x201C; KFT. ZZZ H\ FRP KX NR

KPMG HUNGĂ RIA KFT. www.kpmg.hu NR

NR

0$=$56 .g1<96=$.e57Ĺ&#x201A; e6 TANĂ CSADĂ&#x201C;I KFT. www.mazars.hu

Âť

15,479

Âť

â&#x20AC;&#x201C;

Âť

Âť

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

Âť

Tax and legal consulting, transfer pricing, corporate administration services, settling of tax debates, state subsidies

1989

Âť

1991

Âť

PwC MAGYARORSZĂ G www.pwc.hu NR

Âť

13,388

(4)

Âť

1989

Âť

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Âť = would not disclose, NR = not ranked, NA = not applicable

7KLV OLVW ZDV FRPSLOHG IURP UHVSRQVHV WR TXHVWLRQQDLUHV UHFHLYHG E\ -DQXDU\ DQG SXEOLFO\ DYDLODEOH GDWD 'DWD LV EDVHG RQ FRPSDQLHV¡ RZQ GDWD UHYHODWLRQV 7R WKH EHVW RI WKH %XGDSHVW %XVLQHVV -RXUQDO¡V NQRZOHGJH WKH LQIRUPDWLRQ LV DFFXUDWH DV RI SUHVV WLPH :KLOH HYHU\ HIIRUW LV PDGH WR HQVXUH DFFXUDF\ DQG WKRURXJKQHVV RPLVVLRQV DQG W\SRJUDSKLFDO HUURUV PD\ RFFXU $GGLWLRQV RU FRUUHFWLRQV WR WKH OLVW VKRXOG EH VHQW RQ OHWWHUKHDG WR WKH UHVHDUFK GHSDUWPHQW %XGDSHVW %XVL ness Journal, 1075 Budapest, MadĂĄch Imre Ăşt 13â&#x20AC;&#x201C;14., or faxed to (1) 398-0345. The research department can be contacted at research@bbj.hu

18

WWW.BBJ.HU

3

Budapest Business Journal | January 30 – February 12, 2015

New taxes: From solar panels to soap We take a look at the dizzying array of amendments to the tax code for 2015.

meant to support small business, the deposit required for alcohol sellers would actually be reduced from last year’s HUF 22 mln threshold to HUF 20 mln.

The government lost its battle with the EU over home pálinka brewing, and now even making small amounts of the spirit is taxed. Initially, the government allowed tax−free home brewing of as much as 200 liters, but in 2010 that amount was cut to 50 liters. Following last year’s European Court of Justice ruling, the government has now changed the law so that those brewing less than 50 liters only enjoy a 50% reduction on the excise tax.

Furthermore, all home brewers of pálinka will have to pay a lump sum of HUF 1,000 per year to their local council.

SÁRA JÁVORKÚTI

The new tax code for 2015 includes a wide range of changes, with amendments alone adding up to hundreds of pages.

Tax experts say that, while certain sectors are hit harder than others, for most the main increase in burdens will be administrative. Here we review a selection of some of the changes.

New administrative requirements An electronic shipping registration system called EKAER, launched on January 1 to weed out VAT fraud in shipping on the road, is expected to add to the workload of any company taking shipments. Road haulage companies will have to register shipments for each truck weighing more than 3.5 tonnes, and the sender and recipient of the shipment both have to sign for the load.

Shipments of high−risk items and food will have lower weight thresholds for registration (500 kilos and 200 kilos, respectively).

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The sunshine is free, but the panels are taxed.

Businesses required to use electronic tills with an online connection to the tax authority are now required to report to NAV any invoicing they may be doing which is not registered online. Fines for failure to do so can run up to HUF 500,000.

Administration at the scrapyard has grown heavier, as vendors of used car parts must now enter each part removed from a vehicle into a database, and guarantee it is in acceptable conditions.

Some tax rules for small businesses are supposed to be made simpler, as administrative requirements such as

monthly reports have been scrapped, and rules on closing a small business venture have been made easier. In another change, companies will be able to deduct from their taxes any support extended to higher education institutions – up to 50% of the amount donated.

Environmental taxes on select products While many governments give tax credits to people who use solar panels to reduce their use of electricity from the power grid, the Hungarian government has introduced a tax on the panels this year. The reasoning given for the decision is that the panels contain toxins and therefore require special disposal at the end of their useful life. Complaints from the Green Party and Hungarian President János Áder did not sway the government, and the Cabinet insisted on January 15 that it would maintain the tax.

Cosmetics and cleaning products, hair products such as dye, shaving and hair removal products, all kinds of plasticware, including plastic flower decorations, and office paper were added to the list of products charged an environmental product fee as of January 1. Per−kilogram charges vary in a range of just HUF 11 to HUF 1,900 per kilogram, depending on the item. For instance, washing powder and cleaning products will be taxed at HUF 11/ kg, office paper at HUF 19/kg and hair care products at HUF 57/kg, while plastics pay HUF 1,900/kg. An annual capped charge will be offered for retailers selling small quantities of the products.

Food and drink The so−called fat tax payable on products deemed unhealthy by the authorities, including potato chips and fast food, will be extended to alcoholic beverages, but pálinka and herbal spirits will be exempted (with strict rules on which drinks qualify).

The smallest charge will be levied on drinks with less than 5% alcohol content and the largest on those with 45% or above. Products containing honey in at least 20% and no more than 40% sugar will be exempt.

The amount of money that sellers of alcohol have to keep in the bank as guarantees against their excise tax was going to go up to HUF 150 million forints this year, but that figure is likely to be reduced thanks to a bill submitted on January 19 by Cabinet Chief János Lázár and state secretary Simon L. László. Under the new rules, which are

Road tolls Not strictly speaking a tax, but nevertheless an administrative charge, there is a new motorway toll system, which has sparked a major outcry. The changes added new toll sections to motorways that bypass major cities, including Budapest’s orbital M0 and other connecting roads, such as a small section en route to Budapest’s international airport. With more road to pay for, the motorway administration has added a new pay−by−county element to the electronic payment system, where an e−sticker can be purchased for all roads within a single county’s boundaries for an annual charge of HUF 5,000. For trips crossing counties, payment must be made for each county crossed, in multiples of HUF 5,000 per year. The annual HUF 42,980 charge to be used for toll roads in the entire country remains in place.

Legislators attempted to alleviate the burdens of the last−minute introduction of the new rules by allowing those who make the toll payment for the whole year in February to be exempt from a fine if caught without a sticker in January. The government says it is taking the new system on a test run in January and will learn from mistakes before it is fully implemented in February.

Budapesters are especially concerned that the new toll will raise costs for commuters and hypermarket weekend shoppers, who never had to pay a toll for these trips before and now might choose to add to traffic on nearby lesser roads in response. For drivers taking regular trips on longer distances, costs will be lower as long as they drive through fewer than nine counties out of a total of 19 in the country.

Music in pubs to be cheaper Copyright fees on music played in pubs and restaurants will drop by 19.5% as of January 2015. There is an incentive for pub−owners to report voluntarily to Artisjus – the copyrights watchdog – with a 10% discount offered on their license fees after registration. This discount is not offered if music played on the premises is discovered during an official spot check.

New tax rules for local councils Local governments will be allowed to levy their own tax on practically anything from 2015. No announcements have been made yet, but councils are likely to start raising money in brand new ways.

WWW.BBJ.HU

3

Budapest Business Journal | January 30 – February 12, 2015

19

Even with software, firms seek tax help Overwhelmed by changing tax laws, companies using digital solutions tend to hire specialists as well, so that writing coding is not enough – software firms must be ready to act as consultants too.

LEVENTE HÖRÖMPÖLI-TÓTH

In the parliamentary term of 2010−2014, no less than 859 laws were passed by Hungary’s top legislative body, a record number for any such previous term since the new dawn of democracy in 1990. Some two−thirds of those laws were amendments.

These statistics alone should be telling enough to demonstrate the difficulty to adjust one’s business or private behavior in a timely and legal manner.

Many of the legislative changes inevitably concern tax regulations.

Without proper IT support, it is clearly impossible to face up to the challenge

of their complexity. “A pay−roll specialist functions as a tax authority of first instance,” Szilárd Ocskay, Managing Director of NEXON told the Budapest Business Journal. With 25 years’ experience, NEXON software assists roughly one million employees in dealing with their wages and tax returns. Calculating personal income tax, determining employment−bound levies, as well as filing the related returns form an indispensible part of its solutions.

“Algorithms allow one to get returns completed precisely in accordance with the laws in force. Tax rates, overhead items and tax allowances are all taken into consideration.”

Not buying it “Algorithms allow one to get returns completed precisely in accordance with the laws in force. Tax rates, overhead items and tax allowances are all taken into consideration when calculating the right amounts due for payment,” Ocskay explained. “A supplementary feature of monthly returns is supporting self− checks. Such necessary self−checks are not only made automatically by the program, but a separate log is also prepared of the items listed in the course of the self−check.”

Such smart IT tools were in great demand.

But customers suddenly seem reluctant to buy them. “The proportion of those outsourcing pay−roll management duties, including those connected to returns,

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Szilárd Ocskay of NEXON. has soared steeply compared to software purchases,” Ocskay observed. The figures of NEXON underlie this trend: around one half of its annual turnover of HUF 3.2 billion stems from selling software, whereas the other half is generated by providing outsourcing services.

Modus Zrt. is in the tax software game too, but its activity is restricted to distribution only of Wtber, a complex IT solution for HR management including payroll, social security contributions and income tax calculations. Modus’ market performance lags far behind that of NEXON, but its presence still makes a difference. “It is a fact that the ratio of those completing their returns on their own is sinking. Whether it’s individuals or companies, they tend to charge an accountant with handling the matter,” a company representative told the BBJ. Another major local player is Master Consulting Kft., which brought LOGA, the leading innovative HR/payroll software to the Hungarian market. LOGA bills itself as the first automated payroll accounting software, the first employee portal, the first HR web services and the first such program on the market that features all EU languages. “Innovation and pioneering spirit have always been ADVERTISEMENT

part of the DNA of every individual in the team,” says a Master Consulting spokesperson.

UNIT4 CODA Hungary Kft. and VT−SOFT Software Kft. are subsidiaries of UNIT4, a global leader in offering business software aimed at helping enterprises respond to change. The two Hungarian companies offer a comprehensive enterprise software portfolio covering the full range of business processes, including financials, accounting, logistics and human resource management. They are well equipped to face the challenge of constantly changing legislative provisions too. However, the unpredictability of legislation in Hungary means it is tough to make products compliant in time. “I’m not saying it’s impossible to create IT support for legislative amendments at the pace required by the law. But the periods to duly prepare for new rules are normally very tight,” VT−SOFT sales manager Richárd Varga said.

The slow reaction time of authorities is of no help either. “To name but one example, in 2012 we posed a question to the tax authority for clarification on December 12.

Urgency was of utmost importance since the effective date for the VAT based on the cash accounting principle was January 1, and by then the software was supposed to be finalized. The official response came at the end of the first week of January,” Varga said, recalling a typical story. “This is when we have no choice but to warn clients that there are unconfirmed details in their system. Customers are asked to flag the invoices concerned by such uncertainties and not to file them for accounting until the matter is cleared.” Apparently, pressure can make you creative after all.

WWW.BBJ.HU

20 3

Budapest Business Journal | January 30 â&#x20AC;&#x201C; February 12, 2015

Accounting firms MANAGEMENT CONSULTING

AUDITING

M&A

DUE DILLIGENCE

OTHER

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â&#x20AC;&#x201C;

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YEAR ESTABLISHED NO. OF FULL-TIME EMPLOYEES ON JANUARY. 1, 2015

TAX CONSULTING

2,772

FINANCIAL CONSULTING

www.ps-bpo.com

2,200

PAYROLL ACCOUNTING

PROCESS SOLUTIONS KFT.

ACCOUNTING

1

TOTAL NET REVENUE (HUF MLN) IN 2014

COMPANY WEBSITE

SERVICES

NET REVENUE FROM ACCOUNTING IN 2014 (HUF MLN)

RANK

Ranked by net revenue from accounting in 2014 (HUF mln)

OWNERSHIP (%) HUNGARIAN OWNERSHIP (%) NON-HUNGARIAN

TOP LOCAL EXECUTIVE CFO MARKETING DIRECTOR

ADDRESS PHONE FAX EMAIL

1999 255

JĂĄnos Babos (50), Process Solutions International Kft (50) â&#x20AC;&#x201C;

JĂĄnos Babos, Andrew Majlath, AndrĂĄs Szalai â&#x20AC;&#x201C; â&#x20AC;&#x201C;

1134 Budapest, VĂĄci Ăşt 33.

(1) 451-7100 (1) 451-7196 info-hu@ps-bpo.com

Maersk, Sanyo, BlackBerry

1995 96

â&#x20AC;&#x201C; UCMS Group EMEA Ltd. (100)

BĂŠla Kakuk Katalin BĂşzĂĄs BalĂĄzs ZoltĂĄn Nagy

1146 Budapest, Hermina Ăşt 17.

(20) 775-5888 (20) 775-5888 info.hu@ucmsgroup.com

Âť

1990 95

PĂŠter Bergmann (45.43), PĂŠternĂŠ Bergmann (45.43), Krisztina Bergmann (9.14) â&#x20AC;&#x201C;

PĂŠternĂŠ Bergmann, PĂŠter Bergmann SĂĄndor SoltĂŠsz DĂłra KrĂŠn

1138 Budapest, VĂĄci Ăşt 186.

(1) 238-9000 (1) 238-9010 bergmann@bergmann.hu

Âť

1989 40

(100) â&#x20AC;&#x201C;

PĂŠter Hajnal â&#x20AC;&#x201C; â&#x20AC;&#x201C;

1103 Budapest, .Ĺ&#x192;pU XWFD $ & EXLOGLQJ (1) 235-3010 (1) 266-6438 RIĂ&#x20AC; FH#EGR KX

Âť

1998 50

Individuals (100) â&#x20AC;&#x201C;

*\|UJ\ .Ĺ&#x192;U|VL Eszter Balogh Andrea PotĂĄssy ViktĂłria Szendrei

1143 Budapest, StefĂĄnia Ăşt 101â&#x20AC;&#x201C;103.

(1) 887-3700 (1) 887-3799 klient@klient.hu

1077 Budapest, WesselĂŠnyi utca 16., 3. em.

(1) 461-3100 (1) 461-3150 hungary@tmf-group.com

MAJOR CLIENTS IN 2014

Wizz Air, General Motors, Valad, Sumitomo

â&#x20AC;&#x201C;

UCMS GROUP HUNGARY KFT. 2

www.ucmsgroup.hu

831

1,624

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

%(5*0$11 .g1<9(/Ĺ&#x201A; IRODA KFT. www.bergmann.hu 3

704

731

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

703

2,155

Âť

Âť

Âť

Âť

Shared services consulting, Ă&#x20AC; QDQFLDO VHFWRU temporary employment

BDO HUNGARY (ACCOUNTING, PAYROLL AND OUTSOURCING) 4

www.bdo.hu

WTS KLIENT KFT. www.klient.hu 5

614

618

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

Management and HQ services, VAT registration, Ă&#x20AC; QDQFLDO representation

TMF MAGYARORSZĂ G KFT.

Âť

1994 62

â&#x20AC;&#x201C; TMF Group B.V. (100)

Petrina Makakova, JĂşlia Varga, Zsuzsanna TĂĄborszki CselovszkinĂŠ â&#x20AC;&#x201C; â&#x20AC;&#x201C;

IFRS, US GAAP

Âť

2001 65

(100) â&#x20AC;&#x201C;

Zsolt Kalocsai KlĂĄra Vaitz Edina VĂĄradi

1138 Budapest, Faludi utca 3.

(1) 886-3700 (1) 886-3729 info@rsmdtm.hu

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

ADP, AmCham, Amgen, BCCH, EMC, Euroscript, Masso

1989 48

(100) â&#x20AC;&#x201C;

IstvĂĄn Rajkai JĂłzsefnĂŠ Kulifai â&#x20AC;&#x201C;

1142 Budapest, ErzsĂŠbet kirĂĄlynĂŠ Ăştja 125.

(1) 460-7412 (1) 460-7490 mlx@memolux.hu

â&#x20AC;&#x201C;

IFRS, transfer price documentation

Âť

1990 47

ZoltĂĄn TĂłth (80), PĂŠter Berta (20) â&#x20AC;&#x201C;

PĂŠter Berta â&#x20AC;&#x201C; â&#x20AC;&#x201C;

8900 Zalaegerszeg, Ady Endre utca 2.

(92) 550-050 (92) 550-060 whc@whc.hu

â&#x20AC;&#x201C;

Financial management, reporting & controlling, Ă&#x20AC; QDQFLDO administration, HR administration and recruitment

Âť

2002 49

â&#x20AC;&#x201C; Oriolo Holdings Ltd. (100)

GyĂśrgy PintĂŠr, GĂĄbor Ă dĂĄm GĂĄbor Kis â&#x20AC;&#x201C;

1062 Budapest, Aradi utca 16. II. em. 2.

(1) 345-0092 (1) 345-0093 Ă&#x20AC; QDFRQW#Ă&#x20AC; QDFRQW FRP

â&#x20AC;&#x201C;

HR, labor law and cafeteria consulting

Alltech Hungary Kft.,ViaSat HungĂĄria Kft., ThyssenKrupp Lift Kft., Szimpatex Italy Kft., Beiersdorf Kft.

1995 22

Branko Holding Zrt. (100) â&#x20AC;&#x201C;

MihĂĄly CsĂŠcsei â&#x20AC;&#x201C; Katalin SĂĄfĂĄr

1012 Budapest, MĂĄrvĂĄny utca 16.

(1) 889-6200 (1) 889-6201 info@branko.hu

www.tmf-group.com 6

7

599

RSM DTM HUNGARY ADĂ&#x201C;TANĂ CSADĂ&#x201C; Ă&#x2030;S PĂ&#x2030;NZĂ&#x153;GYI SZOLGĂ LTATĂ&#x201C; ZRT.

544

1,333

1,149

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

www.rsmdtm.hu

8

0(02/8; 6=(59(=Ĺ&#x201A; )(-/(6=7Ĺ&#x201A; e6 SZOLGĂ LTATĂ&#x201C; KFT.

337

450

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

www.memolux.hu

WHC HOLDING KFT. www.whc.hu 295

9

295

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

FINACONT SZOLGĂ LTATĂ&#x201C; Ă&#x2030;S TANĂ CSADĂ&#x201C; KFT. 10

11

ZZZ Ă&#x20AC; QDFRQW FRP

BRANKO PĂ&#x2030;NZĂ&#x153;GYI Ă&#x2030;S SZĂ MVITELI KFT. www.branko.hu

294

275

553

275

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

WWW.BBJ.HU

206

211

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

www.bilance.hu

13

BPO AUDIT TAX

205

www.mgi-bpo.hu

427

â&#x20AC;&#x201C;

OWNERSHIP (%) HUNGARIAN OWNERSHIP (%) NON-HUNGARIAN

TOP LOCAL EXECUTIVE CFO MARKETING DIRECTOR

ADDRESS PHONE FAX EMAIL

1991 25

SASK GazdasĂĄgi TanĂĄcsadĂł Kft. (100) â&#x20AC;&#x201C;

Csaba MolnĂĄr Vilmos WĂĄgner Csaba MolnĂĄr Jnr.

2900 KomĂĄrom, ErdĂŠlyi utca 4.

(34) 540-770 (34) 540-779 bilance@bilance.hu

Âť

2001 46

(100) â&#x20AC;&#x201C;

Szilvia Sarkadi-Nagy, IldikĂł Miszori, LĂĄszlĂł Killik, Ă gnes KĂĄsa-ForgĂĄcs Csilla BĂśgre â&#x20AC;&#x201C;

1146 Budapest, Zichy GĂŠza utca 5.

(1) 422-1339 (1) 688-4869 info@bpokft.hu

Âť

1996 21

IstvĂĄn Nemecz (30) ACCACE Ltd. (70)

IstvĂĄn Nemecz â&#x20AC;&#x201C; Masoud Tajik

1132 Budapest, VĂĄci Ăşt 22â&#x20AC;&#x201C;24.

(1) 412-3530 (1) 412-3530 istvan.nemecz@ accace.com

â&#x20AC;&#x201C; Alessandro Farina (100)

Alessandro Farina â&#x20AC;&#x201C; â&#x20AC;&#x201C;

1056 Budapest, VĂĄci utca 81.

(1) 269-5679 (1) 269-5625 info@itlgroup.hu

MAJOR CLIENTS IN 2014

Racemark International Kft., SANO ModerntakarmĂĄnyozĂĄs Kft., KomĂĄromi KomthermĂĄl .IW :) eStWĹ&#x192;LSDUL .IW Well Done St.Moritz Kft.

OTHER

DUE DILLIGENCE

M&A

AUDITING

MANAGEMENT CONSULTING

TAX CONSULTING

FINANCIAL CONSULTING

PAYROLL ACCOUNTING

ACCOUNTING

YEAR ESTABLISHED NO. OF FULL-TIME EMPLOYEES ON JANUARY. 1, 2015

BILANCE ADĂ&#x201C;TANĂ CSADĂ&#x201C; e6 .g1<9(/Ĺ&#x201A; .)7

SERVICES TOTAL NET REVENUE (HUF MLN) IN 2014

NET REVENUE FROM ACCOUNTING IN 2014 (HUF MLN)

RANK 12

COMPANY WEBSITE

21

3

Budapest Business Journal | January 30 â&#x20AC;&#x201C; February 12, 2015

â&#x20AC;&#x201C;

ACCACE INTERBOOK KFT. www.accace.com, www.tulipize.com 14

150

270

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

TULIP Cloud services

123

320

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

Âť

1995 39

115

221

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

Âť

2001 10

GyĂśngyi Ferencz (Âť), Erik Thurn (Âť), Andrea Kuntner (Âť) CVBA VEGEDE (Âť)

GyĂśngyi Ferencz, Andrea Kuntner, Erik Thurn â&#x20AC;&#x201C; â&#x20AC;&#x201C;

1134 Budapest, VĂĄci Ăşt 33.

(1) 225-7575 (1) 225-7574 vgd.budapest@vgd.hu

â&#x20AC;&#x201C;

Eni Hungaria Zrt., DĂŠlBudai EgĂŠszsĂŠgĂźgyi SzolgĂĄlat KĂśzhasznĂş 1RQSURĂ&#x20AC;W .IW -lJHU .IW )Ĺ&#x192;YiURVL %L]WRQViJL ,URGD .IW )Ĺ&#x192;YiURVL 0Ĺ?YHOĹ&#x192;GpVL +i]

1990 24

JĂłzsef Dencsi (90), Tibor Dencsi (10) â&#x20AC;&#x201C;

JĂłzsef Dencsi, Tibor Dencsi â&#x20AC;&#x201C; â&#x20AC;&#x201C;

1119 Budapest, FehĂŠrvĂĄri Ăşt 44.

(1) 209-6448 (1) 209-6448 balance@balancekft.hu

(100) â&#x20AC;&#x201C;

ZoltĂĄn Lenkei â&#x20AC;&#x201C; â&#x20AC;&#x201C;

1143 Budapest, HungĂĄria kĂśrĂşt 69.

(1) 220-6904 (1) 273-0560 RIĂ&#x20AC;FH#PD[DOGR KX

ITL GROUP KFT. www.itlgroup.hu 15

VGD FERENCZ & PARTNER KFT. www.vgd.eu 16

17

BALANCE KFT.

18

0$;$/'2 .g1<9(/Ĺ&#x201A; e6 TANĂ CSADĂ&#x201C; ZRT.

100

www.balancekft.hu

166

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

90

130

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

Âť

2008 2

86

124

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

Transfer price consulting

Âť

1992 16

TĂźnde GulyĂĄs (50), Andrea Butkovics (50) â&#x20AC;&#x201C;

Andrea Butkovics (UQĹ&#x192; 9DUJD Melinda NĂŠmeth

1138 Budapest, VĂĄci Ăşt 141.

(1) 452-6900 â&#x20AC;&#x201C; RIĂ&#x20AC;FH#FROOLQJ KX

Âť

2003 9

Eszter DankuSzigecsĂĄn (45), TamĂĄs Danku (45) GRND Ltd. (10)

TamĂĄs Danku â&#x20AC;&#x201C; â&#x20AC;&#x201C;

1011 Budapest, 6]LOiJ\L 'H]VĹ&#x192; WpU (1) 700-4141 (1) 700-4545 info@grandconsulting.hu

â&#x20AC;&#x201C; CONSULTATIO Wirtschaftstreuhand GmbH (100)

Krisztina Gubicza Andrea TakĂĄcs â&#x20AC;&#x201C;

1121 Budapest, Zugligeti Ăşt 6.

(1) 391-4130 (1) 391-0055 RIĂ&#x20AC;FH#FRQVXOWDWLRES KX

www.maxaldo.hu

COLLING ACCOUNTING & CONSULTING KFT. www.colling.hu 19

20

21

GRAND CONSULTING KFT. www.grandconsulting.hu

CONS-BUDAPEST Ă&#x153;GYVITELI SZOLGĂ LTATĂ&#x201C; Ă&#x2030;S ADĂ&#x201C;TANĂ CSADĂ&#x201C; KFT.

82

82

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

Âť

1993 17

81

124

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

Transfer price registration, foreign VAT management

55

55

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

Gyulai Kft., CĂ­visSeed Kft., e-Vision Kft., MustĂĄng HungĂĄria Kft., SafetyKleen Kft.

2007 10

BeĂĄta Kincs (45), BĂŠla Kincs (40), GĂĄbor Kincs (15) â&#x20AC;&#x201C;

IldikĂł GĂĄl, BeĂĄta Kincs BeĂĄta Kincs â&#x20AC;&#x201C;

4026 Debrecen, Bem tĂŠr 14.

(1) 279-1722 (1) 279-1723 RIĂ&#x20AC;FH#DXGLW ODEWHFK KX

â&#x20AC;&#x201C;

FCB Hungary Zrt., Gate-to-Trade Kft., EPPS Kft., Turbo Plusz Kkt., Anita HungĂĄria Kft.

2003 6

Individuals (100) â&#x20AC;&#x201C;

IstvĂĄn Varga AnikĂł BĂłnĂĄcz VargĂĄnĂŠ â&#x20AC;&#x201C;

1224 Budapest, III. utca 13.

(1) 362-4748 (1) 362-5355 aniko.bonacz@caldera.hu

â&#x20AC;&#x201C; Leitner + Leitner Ă&#x2013;sterreich WirtschaftsprĂźfungs GmbH (55), Leitner + Leitner International GmbH (45)

MĂĄrta SiklĂłs â&#x20AC;&#x201C; â&#x20AC;&#x201C;

1027 Budapest, KapĂĄs utca 6â&#x20AC;&#x201C;12.

(1) 209-4877 (1) 209-4874 RIĂ&#x20AC;FH#OHLWQHUOHLWQHU KX

Individuals (3) Mazars S.A. (97)

Philippe Bruno Michalak â&#x20AC;&#x201C; â&#x20AC;&#x201C;

1123 Budapest, Nagyenyed utca 8â&#x20AC;&#x201C;14.

(1) 429-3010 (1) 235-0481 mazars@mazars.hu

www.consultatiobp.hu

22

23

AUDIT-LABTECH KFT. www.audit.labtech.hu

CALDERA SZĂ MVITELI, PĂ&#x2030;NZĂ&#x153;GYI Ă&#x2030;S TANĂ CSADĂ&#x201C; KFT.

31

35

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

www.caldera.hu

LEITNER+LEITNER AUDIT NR KFT. www.leitnerleitner.com

NR

0$=$56 .g1<96=$.e57Ĺ&#x201A; Ă&#x2030;S TANĂ CSADĂ&#x201C;I KFT. www.mazars.hu

Âť = would not disclose, NR = not ranked, NA = not applicable

Âť

Âť

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

Âť

Âť

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

Tax screenings, transfer price documentation

Âť

Âť

1994

Âť

1991

Âť

7KLV OLVW ZDV FRPSLOHG IURP UHVSRQVHV WR TXHVWLRQQDLUHV UHFHLYHG E\ -DQXDU\ DQG SXEOLFO\ DYDLODEOH GDWD 'DWD LV EDVHG RQ FRPSDQLHV¡ RZQ GDWD UHYHODWLRQV 7R WKH EHVW RI WKH %XGDSHVW %XVLQHVV -RXUQDO¡V NQRZOHGJH WKH LQIRUPDWLRQ LV accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Additions or corrections to the list should be sent on letterhead to the research department, Budapest Business Journal, 1075 Budapest, MadĂĄch Imre Ăşt 13â&#x20AC;&#x201C;14., or faxed to (1) 398-0345. The research department can be contacted at research@bbj.hu

BBJ

4 Socialite Wine: Creative juices run riot Innovation is being rewarded with some excellent, if unusual, Hungarian vintages.

ROB SMYTH

NOTE: ALL ARTICLES MARKED PROMOTIONAL FEATURES ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILITY

As Hungarian winemakers get a firmer grip on how to get the best from the tricky albeit top quality terroir bestowed on them, the country’s vineyards and wineries are becoming a hotbed of innovation, with lots of exciting wines being made very much outside of the box. Here are a few such samples that harness the spirit of creativity going on.

The notion that dry Furmint can capture the unique nuances of individual vineyards

has become firmly established over the last decade with the proof increasingly being in the tantalizing pudding, especially as the amount of new oak in the wine has been toned down. However, the adventurous István Balassa has gone one step – or rather three steps – further and released a trio of dry Furmints from three separate plots of a single vineyard: none other than the highly esteemed Betsek in Mád. Balassa says that the excellent 2013 vintage finally provided him with the ideal conditions to realize his dream of showing the geological diversity of the Betsek vineyard. The wines in question hail from different volcanic soil types.

Same grape, different soils, diverse tastes The wine labeled “Riolit” comes from the rhyolite tuff that comprises the bedrock of the vineyard, which for me for me oozed

ripe quince and pear notes, with a touch of sweetness. The “Andezit” originates from that part of the vineyard where andesite appears on top of the bedrock, and for me exuded pineapple, then a salty, stony finish.

Balassa has also released a Hárslevelű magnum from this andesite plot from the 2013 vintage. The “Kvarc” comes from where quartz dominates. I still got the sweet pear that characterized the Riolit but with a deeper intensity on the nose and palate, and with seriously stony notes.

Balassa himself has taken a bit of a bashing from some of the winemaking community for his assertions that the soils of the Betsek can yield such different notes. He emphasizes that this is an experiment and that tests are being carried out to prove his assertion. Nevertheless, he maintains that the same steps were carried out from pruning to bottling in making all the three wines, so

the differences between them are therefore due to geological differences. All three wines have Balassa’s trademark heady and layered intensity and while the variations aren’t going to jump out and clobber you over the head, there are definitely subtle differences to be found in these otherwise excellent full− bodied, rich and pronounced wines.

Incidentally, Balassa will be one a plethora of Furmint producers from around the country pouring out their takes on Hungary’s flagship white grape on February 5 at the Magyar Mezőgazdasági Múzeum.

While dry Furmint is typically priced quite high up the scale, one that has slipped under the radar and carries a HUF 990 price tag (at least in Aldi) is Szent Ilona Furmint 2012 from Somló’s Kreinbacher winery. It’s a bit soft in terms of acidity, thanks to the drought like conditions of 2012. Nevertheless, what it may lack in fresh bite, it sure makes up

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greatly contributing to employers’ loyalty. It’s a small price to trade in the vulnerability that patients feel in public health care for the service and certainty that we provide.

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In cooperation with UNION Insurance, we offer unparalleled flexibility, taking into account the actual needs of our partners. The basic package provides health checks, prescriptions and a 24-hour medical call center. More complex policies can range from unlimited specialist appointments through maternity care or sameday surgery to extended medical insurance of family members. What makes our service truly unique is the unrivalled medical background of our own hospital.

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We have an experienced sales staff to give expert advice and full support, to discover and cater for our clients’ needs. We constantly keep in touch through our dedicated client support, informing them about new options and opportunities to keep their policies up-to-date. We make a point of providing a comprehensive report with the relevant data.

TEL: (+36) 1 377-6737 WEB: www.drrose.hu ADDRESS: Széchenyi square 7/8, 1051 Budapest

WWW.BBJ.HU

4 Socialite

Budapest Business Journal | January 30 – February 12, 2015

for in terms of ripe fruitiness and classic Furmint pear and quince notes, with a bit of a tropical fruit twist as well. It’s the ideal house white to have hanging around.

distinctive wine. It was in oak for quite a long time, presumably to soften the harsh tannins, but the use of larger 500 and 1,000 liter barrels prevents the oak dominating.

Also down in this Experimenting in often−sweltering southern Szekszárd region, Adrián Bosz has Another experimental the audacity to make cellar is Heimann in high quality Riesling in a region usually considered Szekszárd, which includes too hot in summer for Umbrian grape Sagrantino as well as Tannat (the latter the cool climate grape of hailing from the Madaran German origin. He does region in southwest France this by finding cooler and also doing well in sights and vineyards high in limestone (alongside Uruguay), among a more Szekszárd’s ubiquitous conventional list of grapes loess), and harvests planted. Franciscus 2009 relatively early, all of is a blend of Sagrantino which serve to retain from the Batti kereszt and refreshing acidity. His Cabernet Franc from the Báta, Csóka−hegy dűlo Porkoláb vineyards, with Riesling (Rajnai Rizling the two grapes hitting it in Hungarian) comes off to delectable effect.

Heimann’s This concentrated red wine from a site overlooking Franciscus 2009 oozes juicy blackcurrant the Danube and usually plucked straight from the attracts some complexity bush, winter spices and enhancing “noble rot” dark chocolate on the nose and palate. It or botrytis. The 2009 is full−bodied, has slightly rustic, teeth−coating tannins nutty, spicy, and oily, creamy with dried and a texture resembling cocoa powder. apricot, orange peel and apple notes, The acidity is still firmly holding up and plus that magical classic mature Riesling bringing out the complexity of this highly petrol note.

PROMOTION

23

WHO'S NEWS

Do you know someone on the move?

Send information in English to research@bbj.hu

Name DAVID BLUNCK Current company/position CEO/INVITEL

Name JUDIT GRÓSZ Current company/position DIRECTOR/ MICROSOFT MAGYARORSZÁG

David Blunck has been appointed CEO of Hungarian telecommunications company Invitel, replacing David McGowan, the company announced.

Blunck (48) moved to Hungary in 2008 and had been the deputy CEO of finance at the firm since September 2012. He has citizenship in both the United States and Hungary and a native fluency in both English and Hungarian.

“It is a great honor for me to lead the team of Invitel in a period when we can continue realizing the successful strategy of our firm. […] Invitel was able to double its revenue in the past two years in the fields of both IPTV and ICT services. We have serious objectives in these strategic markets: We keep modernizing our broadband network and our aim is to expand business ICT services in order to widen our services on offer for our customers” Blunck said.

Judit Grósz was appointed marketing and operative director of Microsoft Magyarország as of February 1, and will replace Gyula Sarusi who will continue his work at the company as director of business and partner relationships for the CEE region, Microsoft reported.

Grósz has been with Microsoft since July 2012, and prior to that worked at UPC from 2000. “I am convinced that this very important branch is being taken over by the best person and we will see positive changes,” Microsoft Magyarország CEO István Papp said.

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9/1/14 10:48 AM