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A look at the planned tax cuts in Hungary

A_look_at_the_planned_tax_cuts_in_Hungary.jpgHungarian officials recently released more information about the tax cuts planned by the Government this year. The country’s economic growth makes it possible to take this step and the changes will most likely be targeted at families and employees in Hungary with low wages. The experts at our Hungarian law firm can give you more details about the expected changes and how they can influence your business in Hungary.

Cuts in the value added tax for certain products

Among the possible tax cuts we can find a reduced rate for certain products, like unprocessed meat. Other VAT cuts may be possible, but they have not yet be announced. This influences business owners in Hungary who commercialize foodstuffs.
It was recently confirmed that the VAT rate in Hungary will be reduced for basic foodstuffs and unprocessed meat will most likely be added to the list of products that benefit from a 5% rate rather than the 27% rate. It was previously suggested that this tax cut will only apply to pork meat, but there have been no official statements on this matter. This measure will be presented to the Hungarian Parliament this month. The lawyers at our Hungarian law firm can keep you updated on any recent changes if you are a business owners that commercializes foodstuffs in Hungary.

Other planned changes

The personal income tax is also due to be cut this year, Hungary’s Minister for Economy recently declared. The personal income tax will most likely be cut to 15 percent from the actual 16 percent and family tax allowances will increase, doubling by 2019. There are no plans to reduce the corporate income tax.
The Hungarian Government also plans to lower the bank tax, in an attempt to accelerate lending. Other sectorial taxes will not be changes, the Hungarian Minister of National Economy declared. 
Our Hungarian law firm offers various services for companies and individuals in Hungary. If you want to know more about taxation in Hungary and your obligations as a taxpayer, please contact our law firm in Hungary.



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