Andersen Increases Revenue Despite Unfavorable Economic Climate

In 2023, despite unfavorable external conditions and negative economic trends, Andersen Adótanácsadó Zrt. maintained its impressive growth rate of previous years.

“There is considerable progress in almost all of our business lines and service areas. There are only two exceptions: taxation services for the film industry and consultancy regarding state aid,” notes CEO Károly Radnai.

“In the former case, performance was hindered by months of strikes by Hollywood screenwriters and actors and by the withholding and suspension of EU funds in the latter. Despite this, the overall picture is very positive as we have exceeded our preliminary plans with a 16% growth rate,” he says.

The top-performing business lines are indirect taxes (VAT, customs, product taxes) and transaction advisory services (restructuring, acquisitions and transaction tax planning). The former generated 33% and the latter around 20% higher sales revenues than the previous year.

Additionally, performance in the energy sector tax advisory services was above average, partly due to special taxes on operators and new tax legislation, as well as the innovative tax solutions developed by the firm. It is worth noting the wealth planning services provided by Andersen (generation change, corporate restructuring, succession, etc.), which has become a separate business line in terms of the number and weight of engagements performed in 2023.

A software product developed last year (with the related consultancy) has appeared as a new feature in the company’s range of services, supporting the use of the electronic VAT system (eVAT) launched on Jan. 1, 2024.

1st M2M Solution

Taxatron, a joint development by Andersen and Ramasoft, is the first operable device on the market to provide a reliable solution for preparing and submitting eVAT returns via a machine-to-machine (M2M) connection.

“In addition to making the VAT return process faster and more precise for firms, the significance of the system launched at the beginning of 2024 is that, within a few years, all corporate tax types, including corporate tax and local business tax, can or must be declared in this way,” Radnai says.

“The system is operating based on the SAF-T (Standard Audit File for Tax) standard developed by the OECD, which defines data supply in the XML data format developed for the description and transfer of tax-related, digitalized accounting data,” he explains.

“The eVAT system is the first domestic application of this modern tax return technology, which has been recently implemented in several European countries. Taxatron is a tool that enables taxpayers to benefit from the new system now,” Radnai adds.

Apart from its business results, professional feedback and recognition also present a very positive picture of the quality of the firm’s work and services. According to the industry publication the International Tax Review, Andersen Adótanácsadó was again named the top performing Hungarian tax advisor in 2023. For the third year in a row, the company has earned the highest professional accolade of the year while also earning the “VAT Advisor of the Year” title for the second year running.

Together with the Szabó, Kelemen & Partners Andersen Law Firm, Andersen Adótanácsadó Zrt. is a member of Andersen Hungary, which has more than 100 employees. To maintain the growth rate outlined in its business plan and satisfy client needs, Andersen Adótanácsadó will continue expanding its professional team in 2024.

This article was first published in the Budapest Business Journal print issue of March 8, 2024.