Hungarian taxes
The Republic of Hungary is a small state located in central Europe with a population of 9 people. The capital is Budapest.
This is a country with an ancient history, a lot of beautiful places and famous attractions.
Hungary is an industrial-agrarian country that successfully conducts international trade and also develops the industrial sector. In addition, the tourism and service industries are developed here. This European state is rightfully considered one of the most favorable for developing your own business, even though tax rates in Hungary quite tall.
Corporate taxation applied to business in the jurisdiction is flexible, so that new commercial organizations can develop effective and most profitable operating schemes.
If you decide register a company in Hungary, then E-COMMERCE BROKER specialists will help organize the entire process so that it takes a minimum of time and the result is positive. We are not only we will open a business in Europe, but we will also develop a tax strategy that will optimize the burden and expenditure of funds.
Structure of the tax system in Hungary
Tax revenues to the Hungarian budget mainly consist of turnover tax (analogous to VAT), which accounts for 39%, income tax 24%, consumer tax 19% and corporate taxes 10%.
Corporate fee (on profit)
The rate is 9%. Income that was received as a result of activities is subject to taxation:
- for companies resident in the country, all global income is taxed;
- for non-resident organizations - income received from work on Hungarian territory.
In some cases, 50% of income is in the form of royalties, and expenses spent on research and development are deducted from the tax base.
Dividend tax (withholding)
According to Hungarian law, there is no withholding tax on dividends, interest and royalties.
EVA tax - a simplified type of tax for entrepreneurs
Tax breaks are available for companies whose annual sales do not exceed 30 million forints. EVA is a substitute for taxes such as VAT, income tax, dividends and profits.
The EVA rate is 37%. If the company's revenue is more than 30 million forints, then the rate increases to 50%, which applies to the tax base in the amount by which the income is exceeded.
VAT in Hungary
VAT is represented by a rate of 27%, which applies to most goods and services. Reduced interest rates apply for some products:
- 5% - for medical equipment;
- 12% - for food and various services;
- 18% - for dairy products, corn, flour.
Income Taxes
It is paid by all legal entities, regardless of legal form. If the tax base is up to 500 million forints, then the rate is 10%, for a larger amount - 19%.
Social fees
If an entrepreneur has employees on his staff, then the amount of social tax for him will be 27,5%:
- 24% - pension contributions;
- 2,5% - medical insurance;
- 1% - labor employment fund.
Qualified services of the E-COMMERCE BROKER Company
Do you need to quickly open a business in Hungary, but at the same time you are not well versed in all the nuances of working in a European country? Then we are ready to offer you our qualified financial services.
Specialists of the E-COMMERCE BROKER Company will do everything possible to obtain financial licenses to start working in the EU.
