Number of businesses that opt for KIVA reaches 65,000
The number of Hungarian companies that now opt to pay the Small Business Tax (KIVA) has reached 65,000, state secretary for tax affairs Norbert Izer told Hungarian news agency MTI.
Izer noted that from the start of 2021 the KIVA tax rate was lowered to 11% from 12%. Since the tax form was introduced five years ago, KIVA companies have saved HUF 185 bln, he added.
Businesses that opt for KIVA pay a fixed tax rate on a tax base of payroll expenditures plus dividends and capital transfers. KIVA businesses are exempt from the payroll tax, training tax and corporate tax. KIVA eligibility is limited to companies with annual revenue up to HUF 3 billion and headcount up to 50.
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