HomePage Contact Us About Us Advertise with us
Custom Search

Hungary Tax Deductions















The tax system in Hungary permits tax relief in the form of a deduction (a reduction in the taxable income) and in the form of a direct credit of the amount of tax payable (tax credit).
Personal Deductions
An individual may receive a tax credit in the following circumstances:
  • A credit for children - HUF 66,670 per month for families with one child, HUF 116,670 for families with two children.
  • Payments to insurance funds - a credit of 20%. Up to a limit.
  • Repayment of loans for a residence - a credit up to a limit.
  • Donations to public institutions or church, up to 1% of the tax payable.



Hungary Business Deductions
  • Offset of losses - a loss generated before 2015 may be offset forward until 2025 up to 50% of the current year's income.
    A loss generated from 2015 forward can be offset forward up to five years.
    There is no carry back of losses.
  • Transactions between affiliated parties - parties are defined in law as affiliated
    when one parties holds more than 50% of the shares of the other or has 50% or more of the control over the other.
    The price for transactions between affiliated parties that are completed on payment of a sum that is significantly higher than the market price is not allowable.
  • Related parties have to report the tax office about such transactions prior to the tax return.
  • Consolidated Returns A consolidated tax filing is not allowed in Hungary.


Hungary Depreciation of Fixed Assets

Depreciation is allowable at the following rates

Class of Asset Annual Depreciation (%)
Buildings 2-6
Machinery and equipment 14.5/33
Computers 50
R&D 50







Austria Tax Deductions | Bulgaria Tax Deductions | China Tax Deductions | Cyprus Tax Deductions | Czech R. Tax Deductions | Estonia Tax Deductions | Finland Tax Deductions | Germany Tax Deductions | Greece Tax Deductions | Hungary Tax Deductions | India Tax Deductions | Ireland Tax Deductions | Israel Tax Deductions | Italy Tax Deductions | Japan Tax Deductions | Latvia Tax Deductions | Lithuania Tax Deductions | Malta Tax Deductions | Montenegro Tax Deductions | Poland Tax Deductions | Portugal Tax Deductions | Russia Tax Deductions | Serbia Tax Deductions | Slovakia Tax Deductions | Slovenia Tax Deductions | Turkey Tax Deductions

Go Back

© All copyrights reserved

Hungary Homepage | Security Policy | Terms of Service