Economy
Hungary to lower social contribution tax from July
The bill was submitted on Tuesday, and MPs discussed it in an exceptional procedure so it is expected to be adopted already on Wednesday.
Under the bill, the rate of the social contribution tax and the ekho for employers will be lowered to 17.5% from 19.5%.
In a related measure, rules on the common consolidated tax base will also be modified. If a private entity is obliged to pay social contribution tax on a given income, 85% of the income will be taken into consideration.
The tax reduction is facilitated by the country’s exceptionally robust economic performance, according to the rationale provided for the bill which highlights that Hungary’s GDP showed the fastest growth in the first quarter in the whole European Union. The cabinet wants to “protect the achievements of the Hungarian economy" by tax reductions and by fostering employment.
Under the bill, the rate of the social contribution tax and the ekho for employers will be lowered to 17.5% from 19.5%.
In a related measure, rules on the common consolidated tax base will also be modified. If a private entity is obliged to pay social contribution tax on a given income, 85% of the income will be taken into consideration.
The tax reduction is facilitated by the country’s exceptionally robust economic performance, according to the rationale provided for the bill which highlights that Hungary’s GDP showed the fastest growth in the first quarter in the whole European Union. The cabinet wants to “protect the achievements of the Hungarian economy" by tax reductions and by fostering employment.
