Taxation in Hungary

Taxation in Hungary

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Hungary quick tax facts for Business (2017), Source: Deloitte.

Corporate income tax rate	9%

Branch tax rate	9%

Minimum tax	Applied to 2% of adjusted gross profit

Capital gains tax rate	9%

Tax basis	Worldwide income

Participation exemption	Yes

Loss relief	Carryforward: Indefinite, but limitations apply Carryback: Generally not available

Double taxation relief	Yes

Tax consolidation	For VAT purposes

Transfer pricing rules	Yes

Thin capitalization rules	Yes (ratio 3:1)

Controlled foreign corp. rules	Yes

Tax year	Calendar year, but different fiscal year may be elected

Advance payment of tax	Monthly/quarterly

Return due date	Last day of the fifth month following of the end of the fiscal year

Withholding tax	Dividends: 0% Interest: 0% Royalties: 0% Branch remittance tax: 0%

Social security contributions	19.5% of gross wages for the employer (from 2018)

Capital tax	No

Building tax/land tax	May apply at municipal level

Real estate transfer tax	4% up to a value of HUF 1bn (€3.3 million) and 2% on the excess, capped at HUF 200 million (€0.65 million)

Local business tax	maximum 2% of net sales revenue

Innovation contribution	0.3%

Financial transaction tax	0.3% of transferred amount maximum HUF 6000 (€20)

VAT	27% (standard), 18%, 5%

Hungary quick tax facts for Individuals (2017), Source: Deloitte.

Income tax rate	15%

Capital gains tax rate	15%

Tax basis	Worldwide income

Double taxation relief	Yes

Tax year	Calendar year

Return due date	20 May (Tax authority prepares it electronically to everyone automatically)

Withholding tax	Dividends: 15% Interest: 15% Royalties: 15%

Healthcare contribution	14% or 22% on some income maximum annual HUF 450 000 (€1460)

Social security contributions	18.5% of gross wages for the employee

Net wealth tax	No

Inheritance and gift tax	9% or 18%

Real estate tax	May apply at municipal level

VAT	27% (standard), 18%, 5%

Sentence(s)

The Employment income is subject to social security contributions for the employer at a flat rate of 19.5%.
social security contributions for the employer are at a rate of 19.5%.
Employment income is subject to social security contributions for the employer at rate of 19.5%.

final_sentence: The Employment income is subject to social security contributions for the employer at a flat rate of 19.5%.
final_sentence: social security contributions for the employer are at a rate of 19.5%.
final_sentence: Employment income is subject to social security contributions for the employer at rate of 19.5%.