Gov’t Eliminates 13% EKHO Employer Contribution

In Hungary

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The government has eliminated the 13% employer contribution for Simplified Contribution to Public Revenues (EKHO) taxpayers, according to the Ministry of Finance.

The change, effected in a decree published in the latest issue of the official gazette Magyar Közlöny, will be applicable from September 1.

The ministry said taxpayers who are no longer eligible for the Itemized Tax for Small Businesses (KATA), which has been limited to sole proprietors, could switch to EKHO, if their occupations permit.

EKHO is restricted to certain professions, such as journalism and performance art. The ministry said a switch to EKHO by performance artists and people in supporting roles, such as sound technicians, set and prop designers, extras and makeup artists, would be "worthwhile" from September 1.

The ministry said provisions in the decree also ease administrative tasks for KATA taxpayers who want to wind up a limited partnership (Bt) and make the switch to EKHO.

There were around 41,000 EKHO taxpayers last year, but that number could "increase significantly" from September, it added. EKHO taxpayers pay 15% on their income in most circumstances.

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