There is hardly a country that would not gladly accept foreign investors. Since the market for offshore services has split into tax-free and low-tax jurisdictions, when setting up companies and planning investments, it is necessary to pay more attention to the real services provided by a given country. Today, Hungary, as a member state of the European Union, expects foreign investors, founders of companies or businessmen permanently residing in its territory, with a large number of benefits available to all international investors.

Within the EU, due to the tightening of the internal control system, by now there are only a few jurisdictions with low taxation, such as, for example, Malta and Cyprus. We must not forget that before joining the EU, Hungary was also a popular country for setting up offshore companies. But the past tense has shown that even today the country still needs and will need more and more foreign investors. And their trust can only be won through the provision of tax incentives and simplified paperwork. Today, Hungary is not considered an offshore center at all, but that is why trust in Hungarian companies is much better than in companies from countries whose offshore activities are inseparable from the image of these jurisdictions.

What are the most important advantages of the Hungarian tax system?

– The corporate tax rate before a tax base of €1.7 million is 10% compared to the Cypriot 12.5% ​​and Maltese 35% tax rates.

– Holding-type income (dividends, profits received from the sale of a subsidiary) is not taxed.

– In the event that a Hungarian company receives royalties, the effective tax rate is only 5%.

– No withholding tax will be charged on payments leaving the country.

What is the place of the Hungarian company in the international structure?

As a member state of the European Union, Hungary does not appear on any black or gray list international organizations, and in order to avoid double taxation, the country has concluded over 70 agreements. Given the fact that there is no tax on interest, royalties or dividends in the country, they can be freely transferred outside the international community. Since payments to any jurisdiction are made tax-free, the Hungarian company is the best link between offshore and onshore entrepreneurial firms.

The Hungarian administration associated with the establishment of companies is one of the fastest in the EU. Any owner of an English company knows that obtaining a VAT number can take up to 9 months, or, for example, in Cyprus, in order to obtain a registration number necessary for the operation of the company, it is required to provide contracts and proforma invoices. In Hungary, VAT and EORI numbers are requested automatically along with the establishment of the company.

A foreign person can also be a director of a Hungarian company, in which case it is possible to obtain a certificate of tax residency.

The thin capitalization ratio is 3:1. This means that the cost of paying interest on debt obligations that exceed the value of the Hungarian company cannot be tax deducted. Losses can be carried forward indefinitely to the following years or covered without time limit from the profits of subsequent years. However, the deduction cannot exceed half of the corporate tax base.

The local industrial tax is a maximum of 2%. Since its level is determined by local authorities from 0 to 2 percent, depending on the location of the company, full exemption from this type of tax can be guaranteed.

Transfer prices in Hungary

Transfer pricing in Hungary is regulated in accordance with OECD recommendations, with very few exceptions. In addition, it is possible to request a preliminary assessment of transfer pricing from the Hungarian tax office. In any case, transfer prices must be documented in Hungary. However, small and medium-sized enterprises (SMEs) are exempt from this obligation. Hungarian firms can qualify as small and medium-sized enterprises if their number of employees does not exceed 250 people and net income is below 50 million euros or all assets and liabilities do not exceed 43 million euros.

VAT in Hungary

The regulation of value added tax (VAT) in Hungary is in line with the relevant EU directives. Hungarian companies can request EU VAT and EORI numbers. Financial activities(including group financing) is exempt from VAT. In Hungary, there are three VAT tax rates: 27% (standard rate), but there are also preferential rates - 18% and 5%.

Given the rules of Hungarian taxation, it becomes clear what advantages await investors in the country. In general, Hungary is a country with low taxes, complying in all respects with the norms of the EU and other international organizations, and it expects foreign investors with preferential taxes. Hungary represents the best opportunity in an international structure to combine on- and offshore activities and companies.

Crystal Worldwide Ltd.
Amerika str 59.
H-1145 Budapest
Hungary
Telephone: +36 1 383 0333
Facsimile: +36 1 383 0433
Web: http://www.crwwgroup.net
Email: [email protected]

countries.

Income tax

Corporation tax

Corporate tax (on profits) is collected from Hungarian resident companies, including JSCs, LLCs, law firms, public funds and universities, as well as non-resident companies that have a share of profits in business associations that own real estate in the country in 75% of the book value of its assets.

In assessing the base of taxation, pursuant to Law LXXXI 1996, account shall be taken, inter alia, of losses, appropriations, depreciation, intangible assets, dividends, royalties, research and development costs, investments in sports development, sponsorship in the film industry and theatrical arts, as well as fines. The corporate tax rate is 10% on the tax base up to HUF 500 million plus 19% on the rest of the tax base (from the amount exceeding this threshold).

Tax incentives are provided for companies:

• investing from 1 billion HUF in projects created or operating in the jurisdiction of local governments;
• providing a wide range of Internet services;
• investing 100 million HUF or more in the production of film and video products;
• creating new jobs;
• supporting the following sports: football, handball, basketball, water polo and hockey.

Small business taxes (KIVA)

Companies with an average headcount of less than 25 people, with a turnover of up to 500 million HUF and a total balance sheet of not more than 500 million HUF 500 are taxed at a rate of 16%.

The minimum tax base cannot be less than the amount of payments to personnel. This tax is paid monthly if the amount paid in the previous year exceeded HUF 1 million, or quarterly otherwise.

Simplified system (EVA)

This taxation system is appropriate for enterprises whose expected annual turnover does not exceed 30 million HUF and annual gross income - 30 million HUF, while the taxpayer should not own shares of other legal entities. The tax rate is 37% and it usually replaces VAT, corporate, income and dividends.

Income tax (PIT)

All income of resident taxpayers is subject to this type of tax. As for non-residents, only those incomes that were received on the territory of Hungary, as well as those taxed on the basis of international agreements, are taxed. It should be clarified here that a resident is considered:

• any citizen of Hungary, other than persons with dual citizenship, without a place of residence or place of stay in Hungary;
• citizens of the EEC member states residing in Hungary for more than 183 days a year;
• third-country nationals with a residence permit;
• persons with residence only in Hungary.

The tax base consists of a combination of income from independent and other activities, as well as from the sale of real estate, interest, dividends, long-term investments and other income. It is calculated either by keeping records of expenses, or by applying an expense ratio of 10%. The personal income tax rate is 16%.

For families with a child, tax credit, amounting to 62500 HUF for each child, and 206250 HUF - if there are three or more children. These funds are not taken into account when levying personal income tax, and can also be deducted from the amount of medical insurance or pension deposit. A resident foreign individual can take advantage of such a loan if he is not entitled to the same or similar loan elsewhere in the same period, and if 75% of his total income is taxable in Hungary.

Private entrepreneurs are required to pay income tax and tax on dividends. The tax base is the difference between the total amount of income and expenses. Entrepreneurial income tax is 10% of the tax base up to 500 million and 19% of the rest of the tax base. The entrepreneur is also required to pay 16% tax on dividends.

payroll tax

Gross payroll tax is paid by the employer (social security - 27%; professional contributions - 1.5%) and the employee (personal income tax - 16%; pension contributions - 10%; social insurance - 7%; employment - 1.5%) .

VAT (VAT)

VAT payers are legal entities or organizations engaged in entrepreneurial activities, regardless of location, purpose or result. If the taxpayer is not registered in Hungary and carries out activities subject to VAT in this country, he must register and receive a tax number.

The general tax rate is 27%. In addition to this, Law CXXVII of 2007 establishes two lower rates:

• 5% - for medical services and medical equipment, books (including electronic ones), magazines, and some services;
• 18% - for milk and dairy products, corn, flour and some commercial services.

Certain types of goods and services are not subject to VAT, including cars and their maintenance, internal combustion engines, residential real estate, food products.

As a rule, taxpayers are required to file a tax return every quarter, except in certain specific cases (monthly or annually).

If a VAT payer is registered in another EU member state and supplies goods to a Hungarian company or individual for an amount exceeding EUR 35,000 per year, then such a supply is taxed, and the amount is converted at the rate of the National Bank of Hungary, which was valid at the time of Hungary's accession to the EU (i.e. EUR 35000 is equivalent to 8826650.4 HUF).

Local and building taxes

Local tax is levied on all entrepreneurs whose offices and branches are registered within the jurisdiction of a particular municipality, and its maximum rate is 2%. The tax base is calculated by deducting it from net sales income.

The maximum construction tax rate for the year is 1100 HUF per 1 m 2

Temporary business activities (such as construction and installation works) carried out by an entrepreneur without a registered office for 30 to 181 days are subject to local tax, the maximum amount of which is HUF 5,000 per day.

Construction tax is paid by the owner of the building, regardless of whether it is used for residential purposes. The maximum tax rate per year is 1100 HUF per 1 m 2 or a maximum of 3.6% of the market value of the real estate. It is paid on March 15 and September 15.

Car taxes (transport)

There are several taxes related to motor vehicles.

Companies pay tax on official cars (if their owners are not private individuals), regardless of whether they are used for personal purposes. Depending on the power and environmental class of the car, the monthly tax amount ranges from 7,700 to 44,000 HUF.

Car tax is paid by owners of vehicles with Hungarian license plates, and its amount depends on the year of manufacture, weight and power of the car. The tax ranges from 140 to 345 HUF per 1 kilowatt of power for cars.

Registration tax is charged on a car vehicles registered in Hungary. It is paid when importing, buying in EU countries and modifying the vehicle. The amount of tax for passenger cars ranges from 0 to 4.8 million HUF depending on the year of manufacture, emission class and technical characteristics (with the exception of hybrid and electric vehicles, for which the standard registration tax is 76,000 HUF).

The property

Income from the sale of real estate is taxed at a rate of 16%. The amount is determined by the individual in his annual tax return and payable by the due date specified for its submission.

Housing stock

If an individual sells a residential house or apartment, then depending on the time of ownership (from the moment of acquisition to the moment of sale), taxable income is reduced as follows: the tax is charged in the zero (acquisition year) and the first year - by 100% of the amount of income; in the second year - 90% of income; in the third - 60%, in the fourth - 30% and in the fifth - 0% of income.

For example, if an individual sells in 2014 a residential building purchased in 2009 or earlier, no tax is charged.

Non-residential fund

Holiday homes, office premises, garages and other non-residential real estate objects have different parameters for reducing the taxable base than for residential real estate, depending on the time it was owned by the person making the sale. So, if the object is resold during the first five years (2010-2015), then the entire amount of income from the sale is taxed in full, then every year it decreases by 10% and is not subject to taxation by the fifteenth year. For example, if an individual sells in 2014 a holiday home purchased in 1999, no tax will be charged.

Another example: in 2014, a private person sells a holiday home purchased in 2000 for HUF 12 million for HUF 20 million. In the 6 months before the sale, the holiday home was refurbished for HUF 2.4 million, which is more than 5% of the revenue and therefore can be considered as an investment, therefore, this reduces the tax base. The total costs associated with the transfer of the property and the payment of bills amounted to HUF 0.6 million. Thus, taking into account expenses, the amount decreases and amounts to HUF million: 20 - 12 - 2.4 - 0.6 = 15. In addition, 90% can be deducted from the calculated amount, taking into account the holding period: 5 - 4.5 = 0.5. Thus, the taxable income is “only” 500 thousand, and the tax is 80 thousand HUF.

All numerical values ​​and calculated data correspond to the Hungarian tax legislation at the end of 2014 - beginning of 2015 according to the website of the National Tax and Customs Administration of Hungary (National Tax and Customs Administration of Hungary) nav.gov.hu. Please check the current information using the original source, because the legislative framework is being updated.

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This country surprisingly combines a nomadic gypsy past and a European future. It is for its sake that passions flare up in the political arena, the euro is gradually replacing the national currency, and investors are convened with attractive tax rates.

Modesty adorns

For most of us, Europe is primarily a tandem of the most influential EU countries, owners of popular tourist routes, whether it is the birthplace of the Eiffel Tower, the country of the “proud and prejudiced” English, or the leaders of financial and economic races. And only Hungary, despite its location in the heart of European latitudes, inexplicably differs from the common features and characteristics of its neighbors. Here, even gourmets allow themselves to dilute their wine with soda, and the gypsies are one of the political forces of the country. It is Hungary that is especially famous for its unique architectural monuments and natural beauties protected by UNESCO, and in the 70s of the XX century, the fascinating Rubik's Cube was invented by the forces and imagination of a local sculptor. Wandering the streets of Budapest, guests of the capital will be pleasantly surprised by the location of fashionable restaurants, quite familiar to Hungarians, next to traditional taverns. And the event, held once a year, called "Gluttonous Thursday", once again proves that the national cuisine is one of the main points of pride. Salami, paprika, strudel, goulash, goose liver - that's far from complete list favorite foods and dishes. It is a shame to admit that the beauty and uniqueness of this country were the first to appreciate the Germans, Austrians and Italians, who, unlike Russian travelers, have long chosen the beauty of the banks of the Danube and thermal springs. People of art do not pass by this country either: Madonna once tried herself as an actress here, and Spielberg even more - shot one of his film masterpieces on the banks of the Danube.

Economic realities

If we move away from the external beauty and romanticism of Hungary, which certainly deserves attention, then perhaps not the most impressive economic and social state picture remains. Hungary, as a true "European", works tirelessly, but for some reason not so much the Hungarians themselves work in the country, but Ukrainians and even the Chinese. Some local publications publish frightening news about what about The vast majority of the “black” labor market is the Hungarians themselves. Meanwhile, in recent months, the unemployment rate has been creeping up, and unscrupulous employers are taking advantage of the situation. The working class is not complaining about the illegal violation of their rights and labor laws, as the company's management resorts to unilateral rewriting of contracts, in which the concept of "flexible hours" turns into an extended working day without pay for overtime hours. The Hungarians are in no hurry to quit, because to get a better job, and indeed to find new job, is now problematic.

Among the unresolved social problems, oddly enough, the question of the status and rights of the Roma is still on the agenda. Hungarian research agencies concluded that the coefficient of tolerance towards the Roma community among the population varies depending on the level of education of citizens. Surprisingly, those with the highest quality education do not maintain a loyal attitude towards the Roma in the same way as those who are less burdened with intelligence.

Civic activity and interest in the fate of their country these days are fueled by raging election campaigns. After reviewing the promises of the candidates, it is easy to understand what the Hungarian people are most worried about unemployment, the protection and support of historical and natural complexes and high taxes. It is a paradox, but if for the inhabitants of Hungary the tax burden becomes more and more unbearable every year, then for investors from other countries the local tax climate is quite acceptable.

Tax planning the Hungarian way

When the offshore tax regime in Hungary was abolished in 2006, tax consultants doubted that investors would return to Hungary. Nevertheless, some features of the tax legislation have kept Hungary on the international tax planning stage.

The Hungarian taxation system fully complies with the requirements of the European Union and the leading international organizations in this field (OECD). Meanwhile, the country continues to attract investors with its rather loyal tax policy. Unlike our country, Hungary attracts business with its truly European reliability and belonging to the Schengen area. The regulated sphere of service provision allows investors to consider Hungary as a starting point for expansion to other countries in the region.

One of the main advantages of the tax system is the exemption of companies from paying tax on dividends received. If we take this fact into account, it becomes quite obvious that a Hungarian company can distribute its dividend income in an offshore company without any tax liability.

The exception is taxpayers - controlled foreign companies (CFC). Income in the form of dividends received from them is taxable for a taxpayer - a legal entity. The “share exclusion” regime (that is, the tax exemption of a qualified member) does not apply in this case.

An adverse tax effect for a CFC is that fees paid are treated as an expense not incurred in the course of furthering the business of the company (unless proven otherwise).

Despite all the above privileges for business, the state treasury is still regularly replenished with tax payments. And this happens through higher rates. income tax and payroll tax. The corporate income tax is also not the last line of expenses, although the rate for it is quite sparing. Business entities in Hungary are also required to pay a business tax in favor of city municipalities. Finally, Hungarian tax legislation is similar to Russian tax legislation in terms of the number and frequency of changes introduced, which creates problems for both taxpayers and tax consultants.

Income is not subject to tax

Companies registered in Hungary (residents) are subject to corporate income tax of 19 percent of all global income. Non-residents should be concerned about the taxation of income received only in the territory of the country. If the company's profit does not exceed 50 million HUF, which is approximately 185,000 euros, subject to certain requirements, the rate can be reduced from 19 to 10 percent. As in Russia, taxable income is calculated taking into account items that reduce or increase the taxable base. If a Hungarian company has suffered a loss, it can be carried forward to future earnings without any restrictions, provided that such financial results are not the result of a breach of law.

As of January 1, 2010, new taxation rules for interest income from foreign sources came into force, which make it possible to use Hungary in a tax-efficient way in loan schemes. According to the provisions of the Income Tax Law, interest income from foreign sources is not subject to income tax in Hungary. The law defines interest income as 75 percent received by the taxpayer, minus expenses that can be directly attributed to the generation of interest. This ultimately means that only 25 percent of all foreign-sourced income will be subject to a 19 percent income tax in Hungary. With respect to general interest income, this exemption results in an effective tax rate (4.75 percent) on interest received by a Hungarian company from a foreign source. This can be a very attractive moment for Russian companies, taking into account the fact that, in accordance with the double taxation agreement between Russia and Hungary, interest paid from Russia to Hungary is not subject to withholding tax.

Participation Exemption Rules

It is known that if a company issues its shares for sale, there is a certain capital gain. According to Hungarian law, the so-called “participation exemption” rules come into force in this case. Their main principle is to equate capital gains with income from trading activities and, as a result, tax these amounts at a rate of 19 percent. Only those taxpayers who owned at least 30 percent of the capital of the affiliated enterprise for at least one year before the sale of shares can use this provision. Capital gains from the sale of shares in real estate companies are also taxed at the general rate. But for foreign shareholders, the existence of a double tax treaty between Hungary and the shareholder's country of residence may mean that there is no need to pay tax.

Purchase Notice valuable papers should be directed tax authorities within 30 days.

Dividendsand royalties

Hungary does not levy withholding tax on dividends paid to non-resident companies. If dividends are paid to shareholders - individuals, the amounts are taxed at a rate of 25 percent. Interest and service fees paid to foreign individuals and legal entities are not subject to withholding tax if the recipients are residents of a country that has signed a double tax treaty with Hungary. In the absence of such a document, the recipients will be obliged to leave part of the funds in the Hungarian state as a withholding tax at a rather impressive rate of 30 percent.

The rules relating to the adjustment of the tax base for income tax provide certain exemptions for the income received by Hungarian companies in the form of royalties.

As a special item reducing the tax base, it is allowed to deduct from profit before tax 50 percent of income received by the taxpayer in the form of royalties, if such a deduction does not exceed 50 percent of the company's total profit before tax. Under the relevant double taxation treaties, royalties can be paid to Hungary from a large number of jurisdictions with a tax of 0 percent at source. The list of countries includes France, Switzerland, Israel and Russia. In the case of companies that additionally have sources of income other than royalties and incur costs associated with this activity, the ability to deduct 50 percent of royalty income from the tax base can lead to a rather attractive effective income tax rate.

Can be inevro?

Since 2010, Hungarian companies have been allowed to maintain and prepare accounting and financial statements In Euro. The decision to use these currencies as the company's functional currency should be reflected in the company's charter or accounting policies. Moreover, after pointing to this fact, the euro will enter the turnover of the organization for at least five years. Another currency can only be used if it is functional, that is, when 25 percent of all income, expenses, expenses and liabilities of the company are made in this currency. As in most countries, in Hungary the tax year for companies is generally 12 months and corresponds to the calendar year. But it is interesting that local accountants are given two months more time to prepare annual reports than Russian colleagues - final results are submitted before May 31 of the year following the reporting one. The preparation of summary reports is not allowed.

Pay locally

Depending on which district of Hungary the company or its permanent establishment is registered, there will be an obligation to pay a certain amount of local business tax. The decision on taxation and its rate is made by local governments. The maximum rate reaches 2 percent, and most local governments charge tax at the maximum rate.

This payment is paid on net proceeds less the cost of goods sold, the cost of raw materials and resale services. An unpleasant feature of local taxation for entrepreneurs is that depreciation of fixed assets, wage costs and general technical support costs are not deductible from the base.

The property- under the tax yoke

As soon as an organization decides to transfer property or acquire at least 75 percent of a share in the authorized capital of a company that owns real estate in Hungary, there will be a reason to calculate the tax on the purchase of real estate. It is important to note that the rules for its payment apply not only to real estate acquired for investment purposes, but also to property that becomes the property of the company due to production needs. The general tax rate is 4 percent.

With regard to the acquisition of a share in a company that owns real estate, tax at the declared rate is levied if the market value of the relevant real estate is less than HUF 1 billion (approximately EUR 3,700,000). If the market value of the property exceeds this amount, the rate will be reduced to 2 percent. In any case, the Hungarian taxpayer will pay no more than 200 million HUF (approximately 740,000 euros) per unit of real estate.

More forgiving rates apply to residential properties. For example, 2 percent - for a property with market value 4 million forints (approximately 14,800 euros) and 4 percent for objects with a higher value.

Omnipresent VAT

The value added tax calculation system in Hungary has been brought into full compliance with the legislative requirements of the European Union. VAT is levied on goods and services supplied, including imported goods.

The basic VAT rate will seem high to a Russian accountant - 25 percent. Basic foodstuffs are taxed at 18 percent, medical goods and services, as well as books and heating for the local population at 5 percent. Some goods and services do not charge VAT at all.

The frequency of generating VAT documents depends on the amount of tax payable. Based on this criterion, reporting is submitted both monthly and quarterly or annually. A consolidated VAT payment procedure is allowed.

"Income"- private income

In Hungary, employment involves the payment of income tax, contributions to Pension Fund, to the fund social insurance, to the fund health insurance as well as professional contributions.

The procedure for calculating income tax resembles the recently discontinued UST in Russia: the rate is 17 percent for the taxable base, which is calculated at a rate of 127 percent of the employee's total income. This procedure is applicable for income not exceeding 5 million forints (approximately 18,500 euros). If the taxable base exceeds the declared amount, 850,000 forints and 32 percent of the amount of income in excess of 5 million forints are paid.

Interestingly, the obligation to pay contributions to the pension fund and the health insurance fund lies with the employee. Contribution rates are 9.5 per cent and 7.5 per cent respectively. The employer, on the other hand, pays 27 percent of the total income of the employee to the social insurance fund, and 1.5 percent of the remuneration paid to the employee as a professional contribution.

Capital gains and dividends from holding shares of a company received by individuals are taxed at a rate of 25 percent. These amounts are also subject to a 14 per cent contribution to the health insurance fund. Maximum Payouts in the FMS is 450,000 forints per year. The tax on income received by a Hungarian citizen as a result of exchange activities is 20 percent.

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1. All individuals pay up to 16% of personal income.
2. For legal entities interest rate nine%. With a high level of income - 19%.
3. Capital gains are included in the tax base and are taxed at a rate of 10% or 19%.
4. The main level of VAT is 27%, preferential - 18%, 5% and zero.
5. The state fee for consideration of the Annual Return is 3000 HUF, no stamp duty is charged.

Total in the territory of the state registered 18 different types duties, most of which relate to ordinary citizens.

Income tax in Hungary for individuals

Payment is collected from residents of the country, they are obliged to transfer tax from the global income in favor of the state. That is, from funds obtained in any jurisdiction legally. Non-residents of the republic, employed labor activity, are also subject to taxation regulations, however, the rate applies only to internal profit.

The fee is 16%. The fee is charged from wages population. In this case, individuals do not fill out declarations and personally do not transfer anything to the treasury - all operations are performed by the employer for them. There is a duty levied on business activities or other types of income, the counterparty is obliged request a declaration form and fill it out indicating all the amounts, as well as sources of profit.

The tax year in the state is equal to the calendar year, the declaration is submitted until May 20 year following the reporting period. Payment must be made at the same time. In some cases, a delay of six months is possible. For untimely transfer of the document, a fine is threatened at a double rate, approved National Bank. For underpayment or duty evasion, 50% penalty from the amount indicated in the declaration.

Legal entities

Resident enterprises pay duty on the total income of all branches and representative offices both in Hungary and abroad. Non-residents transfer taxes from the amount earned within the state. Only the financial profits of corporations are taxed. The standard rate for companies whose profit is over 500 million in local currency - 19% , other organizations pay 9% . When calculating the fee, all necessary expenses for doing business are deducted.

1. income tax not taken into account if the firm has an exemption from duty on dividends. If the increase arose after the sale of the company's shares to a resident of a country with which there is no agreement on the suppression of double taxation, the rate is 19%. In all other cases, a 10% fee is charged.
2. All dividends , other than those received from foreign companies, are exempt from taxes.
3. Losses in the amount of 50% of the planned profit next year are transferred for any period, it is prohibited to carry back losses.
4. Length of the tax year may be less than 12 months, but matching the calendar year is welcome.
5. Exist privileges in the form of tax credits for research centers and investment companies.

Upon payment dividends, royalties or interest There is no tax rate for a non-resident company. If funds are transferred to a foreign to an individual, the level of taxation is 16%, unless the transaction is protected by a double taxation agreement.

VAT in Hungary today

The duty is typical for imports, as well as domestic supplies of goods and services. 0% applies to financial and investment services, 5% - to printed publications in the form of newspapers and books, as well as to medicines. 18% - for fresh food: pastries, dairy products, meat and so on. All other groups of goods and services are taxed at the rate 27% .

There is no threshold for registering enterprises with VAT. If the company's annual turnover does not exceed HUF 5 million, it does not need to be registered. For other corporations, monthly or quarterly filings are required. The payment is attached to the declaration.