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Smallest firms spend 1 out of 4 forints on taxation

Micro firms with monthly revenue of under HUF 400,000 tend to spend every fourth earned forint on taxes, while those with monthly revenue of around HUF 4 million spend only every tenth, according to data from CIB Bank.

CIB Bankʼs István Fetter

The bank says that the revenue of the smallest micro businesses grew in every quarter of 2018, with the total cash flow of CIBʼs small business clients alone reaching HUF 813 billion in Q4 2018, up from HUF 629 bln in Q1.

The utilization of digital channels is also growing, with 91% of transactions carried out electronically in the case of businesses with under HUF 400,000 monthly revenue. The rate in the case of companies with revenue between HUF 400,000 and HUF 4 mln stands at 96%, and 97% in the case of those with higher revenue.

"One of the most important recipients of transfers conducted by our small business clients is the National Tax and Customs Administration," says István Fetter, head of CIBʼs small business division. "Our constructions that allow free electronic transfers towards tax accounts represent a special value to them, because small businesses are digitalizing. Even among the smallest companies, nine out of ten transfers are electronic, and they complete their tax duties in this way."

CIB says that the usage of mobile platforms is increasing as well.

"Some 87% of our small business clients use a kind of e-channel, and 70% have already logged into a mobile application at least once," Fetter notes.