As of 2011 the level of the tax base was raised from 50 million HUF to 500 million HUF, which distinguishes between tax payment obligations of 10% and 19% (amounts falling below HUF 500 million - 10% and above it 19% shall be contributed to the state.). The change took effect on 1 July 2010, therefore the base amount for Q3 and Q4 (aggregate sum) equals to 250 million HUF as proportionate.
So-called ’Extra Tax’
Financial Institutions have payment obligation of ’Extra Tax’ calculated on the basis of their Financial Reports as of end 2009. It was newly decided that the amount calculated on the basis of such report remains unaltered during a three years period, in 2010, 2011 and 2012.
Moreover other activities also fall under payment obligation of ’Extra Tax’ with respect to the years 2010, 2011 and 2012 as retail, telecommunication and energy supply services. In each case the payable amount is calculated on the basis of the net revenue of the company.
As to retail activities:
for amounts that does not exceed 500 million HUF - 0% of the net revenue is payable;
for the part of the revenue falling within the range from 500 million HUF to 30 billion HUF 0,1%;
from 30 billion HUF to 100 billion HUF 0,4%; and
above 100 billion HUF 2,5% of the net revenue is payable.
As to telecommunication activity:
0% of the net revenue is payable for amounts that does not exceed 100 million HUF;
for the part of the revenue falling within the range from 100 million HUF to 500 million HUF 2,5%;
from 500 million HUF to 5 billion HUF 4,5%; and
above 5 billion HUF 6,5% of the net revenue is payable.
The tax rate is defined in 1,05 % of the net revenue with respect to energy supply activities.
Private Pension Funds
As adopted by the Parliament in October 2010, in order to raise additional public funds for state health care system, it is decided that the 8% of gross income of employees so far paid to Private Pension Funds – if membership certified – shall remain in the public health care part of the state budget for a moratory 14 months period starting on 1st November 2010 and ending on 31th December 2011. Since this change is irrespective of the basic obligation of contribution payable to the state budget (equalling to 1,5% of the gross income of a perticular person), the total amount payable during the moratory period equals to 9,5% of the gross income of each employee.
Personal Income Tax
As of January 2011, progressive rates shall be substituted by a flat rate of 16% of the ’super gross’ (meaning x1,27) of the personal income.
Also the tax rate on additional revenues (i.e. interest, dividend, exchange rate profit, letting of real property) shall be reduced from 25% to 16% as of January 2011.
Tax reduction and tax credit provisions are also foreseen to go through significant changes. The underlying social policies stand on legal grounds of number of children, membership in private health funds or private funds on pension pre-collection. For example, the possible reduction with respect to the latter is decided to be decresed from 30% to 20%.
Electronical invoices can give business partners savings on cost of postage, paper and time.
The electronic invoices to the following conditions must be met:
Electronical bill must be issued with the preliminary agreement with the costumer and in the form prescribed by the regulation
The bill must be consistent with the VAT regulations 1992. LXXIV. 13 § (1), 16-17. points and the 43rd VAT Act § (7) of the Directive.
Topping up of the corporate tax / local tax by 20 th of December!
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