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Extension of 10% corporate tax to have little effect on company tax burden, MAX says

Zara said that the extension of the 10% preferential corporate tax rate will have no influence on the tax burden of micro-enterprises, which already fell under the preferential rate, while Hungary's 2,300 major companies pay, in effect, around 10% profit tax due to the various tax discounts.

On the whole, the introduction of the extraordinary taxes (the so-called crisis taxes levied on the energy, telecom and trade companies as well as the financial sector) will by and large offset the impact of the extension of the preferential rate and the elimination of several minor taxes, Zara said.

Legislation approved at mid-year extended the limit for a 10% preferential corporate tax rate from annual profits of HUF 50 million to HUF 500 million. Companies whose tax base is higher now pay a 19% corporate tax rate. (MTI-Econews)