Lawmakers approve tax changes

Banking

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Lawmakers on Friday approved tax changes earlier announced as part of expanded support for families and a package of tax cuts and growth incentives, Hungarian news agency MTI reported.

Illustration: Pixabay

The legislation makes mothers of four or more children exempt from personal income tax for life.

It eliminates the Simplified Business Tax (EVA) from the start of next year, while at the same time lowering the rate of the Small Business Tax (KIVA) from 13% to 12%. The KIVA rate is well over the 9% corporate tax rate, but KIVA companies enjoy a number of exemptions, noted MTI.

The legislation extends the opportunity to pay the Simplified Contribution to Public Revenues (EKHO) to the employees of foreign sporting organizations, as well as Hungarian ones. Additionally, it makes allowances paid within the framework of sports diplomacy tax-exempt.

The law reduces the VAT rate for commercial accommodation from 18% to 5%.

It also temporarily reduces the advertising tax rate to 0%.

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