CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Hungarian Parliament Approves Tax Cut Package

Hungarian Parliament Approves Tax Cut Package

by Ulrika Lomas, Tax-News.com, Brussels

21 December 2016


Hungary's parliament has adopted a package of tax cuts designed to increase the country's economic competitiveness.

Included in the legislation is a proposal to introduce a flat rate of corporate tax of nine percent from 2017. Currently, companies in Hungary are subject to corporate tax at 19 percent on annual income in excess of HUF500m (USD1.7m) and 10 percent on income up to this threshold.

The tax cut bill will also lower employer social contributions from 27 percent to 22 percent in 2017, and to 20 percent in 2018. The Government also has committed to a further 0.5 percent reduction in social contributions if employers increase gross wages by at least 11 percent by 2017.

In addition, more businesses will be eligible to use the fixed rate tax regime for small companies. At present, small and medium-sized businesses with fewer than 25 employees can opt for a flat tax of HUF50,000 a month on revenues up to HUF6m, with revenues above this level taxed at 40 percent. Under the changes, the threshold for the flat tax regime will increase to HUF12m.

TAGS: tax | small business | business | Hungary | employees | corporation tax | small and medium-sized enterprises (SME) | legislation | tax rates

To see today's news, click here.

Leave a comment

Read our Posting Guidelines

 






Close

Password Reminder

Please enter your email address to receive a password reminder.

 






Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Tax-News+ Updates

Receive FREE daily updates from Tax-News.com, straight to your inbox. Register Now!

For a tailored solution, choose to receive selected news updates for your preferred jurisdictions and topics, with our enhanced Tax-News+ subscriber service. Read more...

 

Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »