Hungary places 13th in int'l tax competitiveness ranking

Figures

Hungary is in 13th place in an annual ranking by the Tax Foundation of OECD countries' tax competitiveness, tax consultancy EY said, according to a report by state news wire MTI.

Hungary is ahead of Germany (16th), Austria (18th), the US (21st), Slovenia (25th), the UK (22nd) and Poland (36th) in the ranking. The Tax Foundation highlights the country's 9% corporate tax rate, the lowest among OECD countries, and a better-than-average tax regulatory framework for multinationals, in its annual report.

The Tax Foundation also points to the tax burden on consumption as a disadvantage: Hungary's 27% VAT rate is the highest among OECD states.

EY tax partner Robert Heinczinger noted that Hungary's payroll tax will fall further in 2022, while tax rules for sole proprietors are streamlined, and said those measures could improve the country's standing in the Tax Foundation ranking.

The Tax Foundation's International Tax Competitiveness Index (ITCI) weighs variables across five categories: corporate taxes, individual taxes, consumption taxes, property taxes, and international tax rules.

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