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Update: Hungarian Government extends state of emergency but phases out certain protective measures
  • COVID-19

Update: Hungarian Government extends state of emergency but phases out certain protective measures

On 21 May 2021 the Hungarian Parliament passed Act XL of 2021 amending the act on the defense against the COVID-19 pandemic, thus further extending the state of emergency until the 15th day following the first 2021 autumn parliamentary session, which in practice is likely to fall at the end of September. The extension of the state of emergency prolongs the effect of several COVID-19 related regulations as well, and also includes that the restrictions on foreign investments (FDI) will be effective until 31 December 2021...

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Update: Hungarian Government phases out further protective measures
  • COVID-19

Update: Hungarian Government phases out further protective measures

Effective from 1 May 2021, certain restrictions imposed due to the Covid-19 pandemic are relaxed by the Government Decree No. 194/2021. (IV. 26.) on the third stage in the phasing out of protection measures to be applied in the event of an emergency due to the Covid-19 pandemic (“Government Decree”). Many of the new measures follow on from the introduction of the so called ‘protection certificate’ for those who have received their Covid-19 vaccines or have been confirmed to have contracted the disease.

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Update: Hungarian Government phases out further protective measures
  • COVID-19

Update: Hungarian Government phases out further protective measures

Second stage in the phasing out of protection measures: With the administration of the first dose of the COVID-19 vaccine to 3.5 million residents, Government Decree 175/2021 (IV.15.) on the second stage in the phasing out of protection measures will enter into force...

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UPDATE: Hungarian Government further extends some protective measures and phases-out others
  • COVID-19

UPDATE: Hungarian Government further extends some protective measures and phases-out others

On 7 April 2021 the Hungarian Government issued Government Decree No. 166/2021 (IV.7.) on the extension of most of the current protective measures until 19 April 2021...

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Hungarian Government extended the protective measures and determined the first stage in the phasing...
  • COVID-19

Hungarian Government extended the protective measures and determined the first stage in the phasing out of protection measures

On 27 March 2021 the Hungarian Government issued Government Decree No. 143/2021 (III.27.) on the extension of protective measures due to the Covid-19 pandemic, effective from 28 March 2021 and Government Decree No. 144/2021 (III.27.) on the first stage in the phasing out of protection measures (“Government Decree”).

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Hungarian Government introduces new lockdown restrictions in response to the ‘third wave’
  • COVID-19

Hungarian Government introduces new lockdown restrictions in response to the ‘third wave’

On 5 March 2021 the Hungarian Government issued Government Decree No. 104/2021. (III.5.) on the temporary tightening of protective measures due to the Covid-19 pandemic (“Government Decree”), effective from 8 March 2021.

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Hungarian Government orders rent-free period for state and municipality owned business premises
  • COVID-19

Hungarian Government orders rent-free period for state and municipality owned business premises

On 9 February 2021 the Hungarian Government issued Government Decree No. 52/2021 (II.9.) on rent free period (“Government Decree”), effective from 10 February 2021.

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COVID-19 vaccine developments – Hungary and Sputnik V
  • COVID-19

COVID-19 vaccine developments – Hungary and Sputnik V

Urgent research is ongoing around the world aiming at finding the most effective Covid-19 vaccine. These products should comply with the same legal requirements of pharmaceutical quality, safety and efficacy as any other medicine. The substances are first tested in laboratories then on human volunteers within the framework of clinical trials. Only drugs with successfully completed phase III clinical trials are suitable to apply for marketing authorisation from the competent – national or regional – drug safety authorities. At this moment, recent developments are reported to having reached the end of phase III clinical trials, and in some cases, conditional marketing authorisation procedures are ongoing and in some cases concluded.

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UPDATE: COVID Corporate governance - physical meetings are banned again, previous extraordinary rule...
  • COVID-19

UPDATE: COVID Corporate governance - physical meetings are banned again, previous extraordinary rules are re-introduced

As we reported in April 2020, the Hungarian Government issued temporary legislation (Government Decree no. 102/2020), effective until the end of the state of emergency (18 June 2020), which regulated the holding of shareholder and board meetings during the state of emergency. After the end of the state of emergency, some of these rules ceased to have effect, some of them were amended with the purpose of leading corporate governance back to normal. In the context of the reintroduction of the state of emergency from 4 November 2020, the Government also re-introduced the former extraordinary rules on corporate governance in its Government Decree no. 502/2020. (“Government Decree”) effective from 17 November 2020.

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The Hungarian Government extends state of emergency and introduces new restrictions
  • COVID-19

The Hungarian Government extends state of emergency and introduces new restrictions

On 10 November 2020, the Hungarian Parliament passed Act No. CIX of 2020 on Protection Against the Second Wave of Covid-19 (the “Act”). The Act entered into force on 11 November 2020 and extends the state of emergency originally declared by Government Decree no. 478/2020. (XI.3.) until 19 February 2021 and empowers the Government to extend the effect of its decrees until the end of the state of emergency.

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UPDATE - Hungarian Foreign Investment restrictions extended to 30 June 2021
  • COVID-19

UPDATE - Hungarian Foreign Investment restrictions extended to 30 June 2021

As we reported in May new foreign investment restrictions (“New Hungarian FDI Regulation”) were introduced by a Government Decree during the Covid 19 state of emergency (in addition to the already existing FDI rules on sectors closely related to national security). We also reported at the end of June that the Parliament has refined and slightly modified those rules in an Act and e.g. it exempted indirect transactions from mandatory FDI screening. Now the Parliament has made only two minor but undoubtedly significant changes to the New Hungarian FDI Regulation.

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The Hungarian Government introduces new rules on entering the Territory of Hungary: Update to our 3...
  • COVID-19

The Hungarian Government introduces new rules on entering the Territory of Hungary: Update to our 3 September 2020 newsletter

On 4 September 2020 the Hungarian Government announced the amendment of Government Decree no. 408/2020 (VII.30.) on the rules of entering the territory of Hungary (the “Amendment”). The Amendment came into force on 5 September 2020.

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New restrictions introduced on entering the territory of Hungary
  • COVID-19

New restrictions introduced on entering the territory of Hungary

On 30 August 2020 the Hungarian Government accepted new rules on entering Hungary and Government Decree 407/2020. (VII.30.) restored border control at the entire border of Hungary effective from 1 September 2020.

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When was the State of Emergency terminated?
  • COVID-19

When was the State of Emergency terminated?

The emergency powers handed to the Hungarian government in March in response to the coronavirus epidemic were cancelled with effect from 18 June 2020, thus terminating the state of emergency with effect from 18 June 2020.

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Hungarian Foreign Investment restrictions - UPDATE
  • COVID-19

Hungarian Foreign Investment restrictions - UPDATE

As we reported in May new foreign investment restrictions were introduced by a Government Decree during the Covid 19 state of emergency. At that time the restrictions appeared extensive and burdensome for foreign investors. With effect from 18 June 2020, the Hungarian Government terminated the Covid 19 state of emergency declared on 11 March and several Government Decrees issued in the past few months ceased to have effect. However the Parliament adopted an Act which contains certain provisions from those Decrees (and certain refinements of those provisions) which will therefore remain effective – most of them until the end of 2020. In this Newsletter we focus on provisions of this Act on foreign investment restrictions and certain practical issues which arise from their implementation.

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Hungary introduces foreign investment restrictions using the pretext of the coronavirus – immediate...
  • COVID-19

Hungary introduces foreign investment restrictions using the pretext of the coronavirus – immediate impact on M&A deals

The Hungarian Government issued a new decree on 25 May 2020 (the “Decree”), which requires both notification to and acknowledgement by the Minister of Innovation and Technology (the “Minister”) as a precondition to implementing foreign investment into Hungarian companies operating in a large number of sectors.

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Hungarian Government relaxes restrictions on the freedom of movement: UPDATE to our 12 May newslette...
  • COVID-19

Hungarian Government relaxes restrictions on the freedom of movement: UPDATE to our 12 May newsletter

Easing the rules on the Restriction of the freedom of movement - UPDATE to our 12 May Newsletter

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Hungarian Government relaxes restrictions on the freedom of movement: Update to our 27 March Newslet...
  • COVID-19

Hungarian Government relaxes restrictions on the freedom of movement: Update to our 27 March Newsletter

Government Decree 168/2020. (IV.30.) relaxed the restriction of free movement as follows as from 4 May 2020, except for Budapest and county of Pest (where free movement is similarly restricted as before)

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Special tax on retailers – UPDATE: a permanent tax also affecting foreign retailers selling into Hun...
  • COVID-19

Special tax on retailers – UPDATE: a permanent tax also affecting foreign retailers selling into Hungary

New special taxes on Banks and Retailers have been introduced in Hungary, effective from 1 May 2020. The details of the new taxes are set out in our 16 April 2020 briefing note.

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UPDATE – Government uses emergency powers to take over management of a public company
  • COVID-19

UPDATE – Government uses emergency powers to take over management of a public company

The Hungarian Government has passed a decree and appointed a government commissioner for a listed company (Kartonpack NyRt.) The commissioner is given powers to exercise certain shareholders’ rights, including replacing the members of the board of directors and the supervisory board, and also to exercise certain ownership rights, including powers to terminate agreements of the company and to participate in negotiations with lenders.

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Privacy in the time of the coronavirus - UPDATE
  • COVID-19

Privacy in the time of the coronavirus - UPDATE

Several weeks have passed since the introduction of the first special legislative measures to address the coronavirus pandemic. In this newsletter we review the issues many of our clients face and consider some of the further potential legal issues which may arise as the lockdown conditions are relaxed.

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New Tax Reliefs for Hungarian companies
  • COVID-19

New Tax Reliefs for Hungarian companies

On 21 April 2020 the Hungarian Government introduced several tax reliefs for corporations.

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Update to our April 17 Employment Newsletter
  • COVID-19

Update to our April 17 Employment Newsletter

Update: Recent employment law measures adopted to mitigate COVID-19's negative impact on Hungarian economy

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Update: Law on temporary government support to businesses during the COVID19 crisis
  • COVID-19

Update: Law on temporary government support to businesses during the COVID19 crisis

As part of its response to the economic effects of the COVID19, the Hungarian government passed, on 10 April, a new law which paves the way for providing direct financial aid (the “Temporary Government Support”) to Hungarian businesses that are in or face cash flow problems due to the current economic circumstances caused by the COVID19 pandemic. The measures announced by the Hungarian government follow the framework previously accepted by the European Commission (section 3.1. of Communication C/2020/1863 on the Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak) and provide that limited temporary amounts of aid may be provided to businesses that find themselves facing a sudden shortage or unavailability of cash, if this is an appropriate, necessary and targeted response in the current circumstances.

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UPDATE: Recent employment law measures adopted to mitigate COVID-19's negative impact on the Hungari...
  • COVID-19

UPDATE: Recent employment law measures adopted to mitigate COVID-19's negative impact on the Hungarian economy

In recent weeks, the Hungarian Government adopted various support measures and state aid schemes tailored specifically to employers in an effort to assist companies in the economic turbulence caused by the COVID-19 crisis. We set out below a brief summary of the specific employment related state subsidies available from 16 April 2020.

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Special Taxes on Banks and Retailers
  • COVID-19

Special Taxes on Banks and Retailers

On 14 April 2020, the Hungarian government issued decrees on special taxes on retailers and credit institutions which will be effective from 1 May 2020. The new taxes are supposed to mitigate the economic harm caused by the COVID-19 crisis.

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UPDATE: Corporate governance - physical meetings are banned, new measures are introduced to facilita...
  • COVID-19

UPDATE: Corporate governance - physical meetings are banned, new measures are introduced to facilitate the continuation of corporate decision making procedures

On 10 April 2020 the Hungarian Government issued new temporary legislation (Government Decree no. 102/2020) which changes the modus operandi of holding shareholder and board meetings.

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Hungarian government announces measures to assist the economy
  • COVID-19

Hungarian government announces measures to assist the economy

At the 7 April 2020 press conference of the Operational Group, responsible for the Hungarian government’s response to the COVID 19 crisis, László Palkovics, the Minister for Innovation and Technology announced certain measures intended to mitigate the economic impact of the COVID-19 crisis.

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Update on our previous LITIGATION newsletter dated 24 March 2020: Impact of COVID19 in ongoing lawsu...
  • COVID-19

Update on our previous LITIGATION newsletter dated 24 March 2020: Impact of COVID19 in ongoing lawsuits and arbitration cases

In certain key respects the situation applying after the declaration on 15 March 2020 of an “extraordinary judicial holiday”, as described in our 24 March 2020 briefing, no longer applies.

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Anticipated state support measures in Hungary
  • COVID-19

Anticipated state support measures in Hungary

The Hungarian Prime Minister, Viktor Orbán, has announced that a package of economic measures related to COVID-19 will be published on the 7th of April, 2020. The support scheme is expected to include several labour market and financial relief measures in the industry, commerce, transport and logistics sectors.

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National moratorium on payments in Hungary
  • COVID-19

National moratorium on payments in Hungary

As part of its response to the economic effects of COVID19, the Hungarian government issued overnight a moratorium on all payments under existing commercial credit agreements (including loans and financial leases to businesses and consumers) until 31 December 2020...

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UPDATE: Governing party accepts new legislation to suspend the Parliament’s powers
  • COVID-19

UPDATE: Governing party accepts new legislation to suspend the Parliament’s powers

As part of the Hungarian government’s efforts to protect the safety and health of Hungary during the state of emergency ordered as a result of COVID-19, on 22 March 2020 the Hungarian government has proposed and parliament has approved a new law (Act on Protecting Against the Coronvirus). This law was scheduled to be passed on 23 March 2020 with a fast-track procedure.

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Hungarian government orders temporary requisition of certain companies
  • COVID-19

Hungarian government orders temporary requisition of certain companies

As part of the Hungarian government’s efforts to protect the safety and health of Hungary during the state of emergency ordered as a result of COVID19, the task force established by the Hungarian government has announced a list of companies which, due to their operation in the energy, telecommunication, transportation, health or technological sector may represent an infrastructure that has a direct and imminent role in protecting the national safety, health and economy of Hungary...

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Privacy in the time of the coronavirus
  • COVID-19

Privacy in the time of the coronavirus

In order to take appropriate measures to provide a safe environment, employers are finding that they need to process more personal data than in normal times. A proper data processing protocol can and should strike a balance between epidemic control and privacy protection.

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Restrictions on the Freedom of Movement
  • COVID-19

Restrictions on the Freedom of Movement

On 27 March 2020, the Hungarian government passed Government Decree 71/2020 (III.27.) which introduces a restriction of movement for the following two weeks.

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What changes in cases before the Hungarian regulator in competition law cases during coronavirus epi...
  • COVID-19

What changes in cases before the Hungarian regulator in competition law cases during coronavirus epidemic?

Due to the COVID19 epidemic the Hungarian Competition Office („HCO”) has introduced various changes to its ordinary procedure. These changes are generally designed to limit personal meetings and allow the HCO employees to work from home. These changes may, however, have an impact on ongoing cases as follows...

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Impact of COVID19 on corporate governance
  • COVID-19

Impact of COVID19 on corporate governance

FAQ: Corporate governance and COVID-19 In light of the current COVID-19 outbreak, all companies and institutions are taking precautionary measures to minimise the potential impacts the COVID19 and to safeguard the health and safety of everyone involved. This, however, may also impact the company’s ability to hold its annual general meeting or other extraordinary meeting of the shareholders or other managing and/or supervisory bodies.

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Employment law in the time of the coronavirus
  • COVID-19

Employment law in the time of the coronavirus

FAQ: The COVID19 outbreak affects most of the businesses having employees in Hungary. So far employers have raised various questions to our employment team and we collected below the most frequently asked questions and our general responses. It is important to note that the situation is very fluid and applicable rules and their interpretation can change rapidly.

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Impact of COVID19 on the Tax Liabilities
  • COVID-19

Impact of COVID19 on the Tax Liabilities

Is there any tax relief due to the COVID19 pandemic?

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How does the COVID-19 affect lease agreements?
  • COVID-19

How does the COVID-19 affect lease agreements?

Is the Covid-19 epidemic considered as force majeure under Hungarian law?

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Hungarian Government orders moratorium on termination of lease agreements in certain sectors
  • COVID-19

Hungarian Government orders moratorium on termination of lease agreements in certain sectors

In what way are the lease agreements affected during the moratorium?

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Hungarian Government orders restrictions on entering premises
  • COVID-19

Hungarian Government orders restrictions on entering premises

Government Decree No. 46/2020 (III.16.) came into effect on 17 March 2020, ordering prohibitions and restrictions on visiting certain premises.

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Impact of COVID19 in ongoing lawsuits and arbitration cases
  • COVID-19

Impact of COVID19 in ongoing lawsuits and arbitration cases

FAQ: How COVID19 impacts the ongoing lawsuits and arbitration cases?

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Impact of COVID19 on corporate governance
  • COVID-19

Impact of COVID19 on corporate governance

FAQ: Corporate governance and COVID-19 In light of the current COVID-19 outbreak, all companies and institutions are taking precautionary measures to minimise the potential impacts the COVID19 and to safeguard the health and safety of everyone involved. This, however, may also impact the company’s ability to hold its annual general meeting or other extraordinary meeting of the shareholders or other managing and/or supervisory bodies.

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Registering and using e-signature in time of coronavirus
  • COVID-19

Registering and using e-signature in time of coronavirus

Representatives of Hungarian companies may register authorised e-signatures with the court of registration...

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New legislation promulgated to temporarily suspend the Parliament’s powers
  • COVID-19

New legislation promulgated to temporarily suspend the Parliament’s powers

FAQ: Hungarian government submits new legislation introducing the possibility to govern without the Parliament

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Information regarding Covid-19
  • COVID-19

Information regarding Covid-19

Due to the current developments in connection with the spread of Covid-19 (coronavirus), we would like to inform you of the measures being taken by Lakatos Köves & Partners (“LKT”).

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