Economy
Hungary social contribution tax not to be lowered from January 2019
Almost two years have passed since the signing of the wage agreement. The sixth of the 7-point agreement stipulated that as of 2019, the social contribution tax will be lowered by two percentage points annually if real wages rise by at least 6.0%.
In light of that it is not entirely surprising that we find the following remark in 2019 tax laws: “the 19.5% social contribution tax paid by the employer in the first half will be reduced to 17.5% in the second half of the year."
If the social contribution tax is lowered as of July, the government needs to make a decision about it in June, when it will likely have wage data up to April.
In light of that it is not entirely surprising that we find the following remark in 2019 tax laws: “the 19.5% social contribution tax paid by the employer in the first half will be reduced to 17.5% in the second half of the year."
If the social contribution tax is lowered as of July, the government needs to make a decision about it in June, when it will likely have wage data up to April.
If the rate of the social contribution tax is reduced as planned, employers' tax burdens will have been be lowered to 13% by 2022 from 28.5% in 2016.
Front page photo by MTI/Tamás Kovács
