As part of its economic protection action plan, the government decided in April to further reduce KIVA, which was approved by parliament among several other amendments.

From 01.01.2021, individuals will no longer be able to operate as KATA taxpayers in several companies.

From 2021, the KATA form of taxation will be significantly tightened. The 40% tax burden will be expanded, and income from a principal exceeding HUF 3 million within a year will also be taxed at this rate. The aim is to avoid frauds, in particular, the elimination of hidden employment contracts from the system.

Together with the aggregation of individual contributions, social security contributions for social security and labor market contributions will cease to apply to social entrepreneurs if the contribution base is less than 50% of the minimum wage.

As of July 1, 2020, our payroll will be simpler and more transparent, as individual contributions will be consolidated as Social Security Contributions.

One important element of the summer legislative changes was the removal of the obligation to replenish corporation tax.

From January 1 this year, mothers of four children in their household will be eligible for a new tax base reduction, where the tax base will be reduced to zero, provided the appropriate conditions are met.

From 1 January 2020, the small business tax will be reduced by 1 percentage point to 12%.

Dear Clients! On behalf of our Accountancy Office and the whole staff we wish you a healthy, happy and succesful new year! We hope you will be satisfied with our services in Y2018 too.

The Hungarian government accepted the law modification that says, the social security tax was going to be decreased from 22% to 19.5%.