Parliament approves 2018 tax package
The Hungarian Parliament approved a package of tax changes that will reduce the VAT rates on internet services, fish and pork innards to 5% next year, among other changes, state news agency MTI reported.
Among the items on the legislative package, those offering homes as commercial accommodation will be able to choose the simplest and most preferential itemized tax on up to three flats or holiday homes, set at an annual HUF 38,400 per room.
The law will also exempt revenue from rent over an annual HUF 1 million from the 14% health contribution, taxing it only at the 15% rate on personal income.
The law will also raise tax preferences for employee accommodation support with the aim of improving workforce mobility.
VAT on internet services will be reduced by a further 13 percentage points to 5% in 2018.
VAT on fish will likewise be cut to 5%, which the government hopes will result not only in savings, but also greater consumption. The same preferential VAT rate will also be applied to pork innards.
The package was approved with 152 governing coalition and Jobbik MPs voting in favor, and 40 voting against.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.