10 Facts about Taxation in Hungary
January 2017
1 Standard Corporate Income Tax (CIT): 9%
2
A company without profit still has to pay corporate income tax on the income minimum as tax base.
No Withholding Tax in B2B relations* 3 *Royalty, Interest, Dividends; unless the recipient is CFC
Standard VAT rate in Hungary: 27% 4
Reduced VAT
5 . 5% rate applies to medicine, books, magazines, specific large live animals, eggs, poultry meat, milk district heating services, instrumental live music performed by artists, and from 2016 new residential properties
. 18% rate can be applied to milk and dairy products, corn, starch, commercial accommodation services, restaurants and candy shops, internet supply, and open-air events gate service
Personal Income Tax in Hungary: 15% 6
7 Social contributions owed by the Employee: 18.50%
Social contributions owed by Companies: 23.50% 8
Land tax 9 Depending on the local government’s decision, land tax could be calculated in two ways: a) by the land’s area in m2 (max. tax rate is HUF 200 / m2 / annum) decreased by the structure’s space on the land itself b) the adjusted market value of the land (capped at 3%)
10
Building tax
. owed regardless of what they are intended or utilized for (both residential and non- residential buildings/structures)
. the owner at January 1st is subject to tax (should there be more owners, tax is paid proportional to their shares)
Depending on the local government’s decision, building tax could be calculated in two ways: . by the useful space in m2 (max. amount payable is HUF 1,100 / m2 / annum) . adjusted market value (max. 3.6% of adjusted market value)
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The present infographic has been prepared for general guidance and does not represent a professional advice. Furthermore, because the legislation is changing continuously, some of the information may have been modified after the material has been released. Accace does not take any responsibility and is not liable for any potential risks or damages caused by taking actions based on the information provided herein without additional detailed expert advice.