Hungary has moved up one place to 52nd in the World Bankʼs latest annual ease of doing business ranking. Ahead of Hungary regionally in the ranking are Poland (in 40th place), the Czech Republic (41st), and Slovakia (45th).
Hungaryʼs score for the ranking was 73.4, compared to a score of 86.8 for the ranking leader, New Zealand, and a low score of 20.0 for Somalia, in last place on the list, reported state news wire MTI.
The World Bank noted in its Doing Business report that Hungary had made paying taxes easier by upgrading the internal electronic tax system, while making paying taxes less costly by reducing the payroll tax.
Hungary also raised its overtime allowance to 400 hours per calendar year, making employment regulations more business-friendly, the World Bank said.
"Authorities could benefit from the experience of Hungary, where employers have the freedom to use fixed-term contracts of up to five years for tasks of a permanent nature," it added.
Hungaryʼs Ministry of Finance acknowledged the improvement in the countryʼs ranking in a statement on Thursday. It noted that the payroll tax had been reduced further from July 1 and that businessesʼ burdens would ease more from 2021, when the National Tax and Customs Administration (NAV) starts preparing corporate tax returns, as it already does for private individuals.