The following forms of income are exempt from tax if they are received by an individual:
Interest on deposits, including savings.
Interest on government securities and securities of companies.
Food vouchers to an employee, up to a limit.
Gains from Hungarian or EU stock exchanges.
Scholarships, subject to certain conditions
Gain from sale of real estate held for 15 years or more.
Comment: When an employee receives a benefit that is not paid in cash, the obligation to pay tax falls on the person providing the benefit.
Note: From 2007 income from interest, EU stock exchange and dividend would be subject to 10% tax. From 2010 the tax rate for such income would rise to 18%.
