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Hungary's New 27% V.A.T. RateJanuary 2012 As we updated in our December update starting January 1, 2012 the new standard V.A.T. rate in Hungary increased from previous 25% to 27%. Following the increase Hungary's standard rate is the highest in the EU. Hungary Income Tax Rates 2011October 2011 In 2011 there is a new flat 16% tax rate for individuals replacing the 2010 rates of 17% and 32%. For companies, income of up to HUF 500 million is subject to 10% corporate tax, replacing the 2010 ceiling of HUF 250 million. Hungary 2011 Tax UpdateDecember 2010 There are several tax changes starting 1.1.2011. The Hungarian personal income tax rate will change to a single 16% flat rate, replacing the 2010 tax rates of 17% and 32%. The Hungarian corporate income tax rate will remain 10% and 19%, depending on the annual income, in 2011 and 2012. The tax rate will change to a single flat 16% rate starting 1.1.2013. There are also changes regarding tax withholding rates for payments to non-residents. From 1.1.2011 payment of interest and royalties will be exempt from tax withholding. Hungary New 10% Corporate Tax RateJuly 2010 The Hungarian parliment approved on July 22, 2010 a bill reducing the previous 19% corporate tax rate to 10% retroactively from 1.7.2010. The new reduced 10% rate, the lowest in the EC relates to a tax base of up to HUF 250 million,from 1.1.2011 onwards up to a ceiling of HUF 500 million, about $ 2.3 million. Hungary Tax Rates 2010March 2010 There are some significant changes in 2010 . From 1.1.2010 the new corporate income tax in Hungary is 19%, compared to the previous 16% rate. The personal income tax rates are 17% and 32% , compared to the previous 18% and 36% rates. A new net wealth tax was introduced from 1.1.2010. The tax is imposed on luxury assets including aiplanes, boats and luxury cars and flats. Hungary U.S. New DTAFebruary 2010 Hungary and the U.S. signed on 4.2.2010 a new double taxation treaty replacung the previous DTA from 1979. For additional info visit www.ustreas.gov. Hungary V.A.T. UpdateJuly 2009 As mentioned in our May update the standard V.A.T. rate was raised from 20% to 25%, effective from 1.7.2009. A new reduced 18% rate , relating to hotels and basic food , was introduced too. From 1.7.2009 social security contribution was reduced from 29% to 26% , up to a ceiling, twice the minimum salary. Hungary V.A.T. UpdateMay 2009 The Hungarian prime minister presented on April 19, 2009 the new tax amendments. The standard V.A.T. rate will be raised from the current 20% to 25%, effective 1.7.2009. A new reduced 18% V.A.T. rate would be introduced for certain basic foodstuff. The current reduced 5% V.A.T rate relating to books newspapers and medicines would remain unchanged. From 2010 the corporate tax rate will be raised from the current 16% to 19%, while the 4% solidarity tax for companies would be canceled. A new real estate wealth tax would be imposed from 2010. Hungary Income TaxSeptember 2008 The Hungarian government proposed some tax changes, effective from 1.1.2009, if confirmed. The corporate income tax rate is expected to rise from the current 16% to 18%, while the current 4% solidarity tax would be abolished, in total a 18% corporate income tax rate, compared to the present effective rate of 20% (including solidarity tax). Other proposals include, inter-alia, full tax deduction for interest expense paid between related parties, compared to the current limitations relating to thin capitalisation and 50% tax deduction for interest between related parties. The proposals have yet to be confirmed by the parliment.. Hungary Tax Rates 2008January 2008 Hungary tax rates for 2008 are similar to 2007 rates. Hungary's corporate tax rate is 16%. Personal income tax rates are 18% and 36%, with slight changes in the tax brackets, compared to 2007. The standard VAT rate in 2008 is 20%. there is also a reduced rated of 5%. Hungary TaxesJANUARY 2006 From 1.1.2006 there are some major tax changes in Hungary. The top V.A.T. rate is 20%(previous rate-25%). The top marginal personal income tax rate is 36%(previous rate-38%). Corporate income tax for the first HUF 5 million taxable income is 10%, 16% for taxable income in excess. From 2008 the local business tax would be abolished. Hungary Income Tax 2005OCTOBER 2005 The Hungarian government proposed some tax amendments to be effective from 1.1.2006 The amendments have not been confirmed yet by the parliment. The major amendments include: -Lowering the top marginal tax rate for individuals from 38% to 36%. -Taxation of individual capital gains from securities at a rate of 25%. -Increasing of tax credits and family allowances. Hungary Taxes 2004JANUARY 2004 From 1.1.2004 the new corporate income tax rate in Hungary is 16%(previous rate-18%). Offshore Companies: -The new tax rate for offshore companies is 4%(previous rate-3%). -The offshore companies in Hungary will end after 2005. |
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