Taxes and fees

Basic taxes
Income tax
  • subject: private person
  • base: all yearly incomes arising from independent and not independent activities except not reducable incomes, multiplied by 1,27
  • 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 tax base (e.g. depreciation)
  • tax rate: 16 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: 16 per cent

Source: Law Act 1996: LXXXI and 2006: LIX

VAT
  • subject: enterprise selling goods and services
  • base: value of goods and services purchased
  • tax rate: 25 per cent (general measure), 18 per cent for goods like milk, milkproducts, bread etc., 5 per cent  for goods as medicaments, books, etc. Certain public services are tax free (e.g. post services, medical service, etc.)

Source: Law Act 2007: CXXVII

Special branch taxes
  • Until December 31. 2012 a special branch tax shall be payed by enterprises acting in the field of retail trade, telecommunikation and energy supply and rendering financiel services.

Source: Law Act 2010: XCIV and Law Act: 2006: LIX

Tax and fees on wages
Taxes and fees payable by employer
  • social insurance contribution tax
    • base: actual income
    • tax rate: 27 per cent

Source: Law Act 1997: LXXX

  • health contribution
    • base: base of social insurance contribution
    • tax rate: 25 per cent

Source: Law Act 2003: LXXXVI

Tax payable  for allowances of non-wage character
  • base: total amount of allowance multiplied by 1.19
  • tax rate: 43 per cent, in special cases 16 per cent

Source: Law Act 1998 LXVI

Taxes and fees payable by employee
  • income tax (from the income tax as described below a tax refund upto max 18 per cent and 12.100 HUF is deductible if the aggregated income doesn't exceed HUF 1.250.000/year)
  • pension contribution:
    • base: identisch with the base of social security insurance
    • tax rate:10 per cent
  • health contribution: HUF 5.100/Monts

Source: Law Act 1997: LXXX and Gov. Dec. 195/1997 (XI: 5.)

Taxes of not reducable icomes
  • Such as incomes arising of selling movable assets and rights of property value, invomes from lease etc. where for the tax base special provisions apply but the tax rate is the general one.

Source: 1995: CXVII

Local taxes
Local commercial tax
  • subject: enterprises having their seat in the given municipality
  • tax base: net income of the enterprise reduced by the price of goods and services purchased and by costs of materials
  • tax rate : 2 per cent.
Other local taxes
  • E.g. building tax, land tax, commercial tax, tourist tax, local vehicle tax

Source: Law Act 1990: C