Taxes and fees
In Hungary - such as in the other member - countries of the EU the tax-system has three pillars. These are the corporate tax, the income tax und the VAT, further the system of social insurance contribution.
Basic taxes
Income tax
- subject: private person
- base: yearly incomes arising from dependent and independent activity
- tax rate: 16 per cent
Source: Law Act 1995: CXVII
Company tax
- subject: enterprise
- base: the difference between incomes and costs corrected by items increasing tax base (e.g. investments) and items reducing it (e.g. depreciation)
- tax rate: 10 per cent up to an income of max. 500. Mio HUF, 19 per cent for the part beyond 500 Mio HUF
Source: Law Act 1996: LXXXI
Capital return tax
- subject: company member receving dividend
- base: member's dividend
- tax rate: 30 per cent (16 per cent income tax and 14 per cent healths contribution)
Source: Law Act 1995: CXVII
VAT
- subject: enterprises selling goods and services
- base: value of goods and services sold
- tax rate: 27 per cent general measure, with some exceptions
Source: Law Act 2007: CXXXVII
Tax and fees on wages
Taxes and fees payable by the employer
Social insurance contribution tax
- base: actual income
- tax rate: 27 per cent
Source: Law Act 2011: CLVI
Technical education contribution
- base: actual income
- tax rate: 1,5 per cent
Source: Law Act 2011: CLV
Taxes and fees payable by the employee
Income tax (see above)
Pension contribution:
- base: actual income
- tax rate:10 per cent
Source: Law Act 1997: LXXX
Health contribution in kind
- base: actual income
- tax rate: 4 per cent
Source: Law Act 1997: LXXXIII
- base: actual income
- tax rate: 3 per cent
Source: Law Act 1997: LXXXIII
Labour Market Tax
- base: actual income
- tax rate: 1,5 per cent
Source: Law Act 1997: LXXX
Regarding the fact, that the tax-system is very complicated and changes occur quite often the involvment of a tax expert is to be suggested.