Following the promulgation of significant tax law amendments in June 2016, the Hungarian Parliament passed further tax bills in November and in December 2016. Most of the tax law amendments aim to provide more favorable conditions to taxpayers, e.g. reduction of the corporate tax rate to an exceptionally low 9% and introducing new tax incentives for corporations at the same time, or reduction of the employer social security contribution from 27% to 22%. In addition, a special tax amnesty has also been introduced to provide safe harbor to those having undeclared income in low tax jurisdictions that, in line with the OECD and EU information exchange initiatives, are going to provide information to Hungary from 1 September 2017. Below we summarize the most important changes that will enter into force as of 1 January 2017 (if the date of effect differs from this date, we note it specifically).
Dear Readers and Clients, you may download our summary on the tax law changes by clicking here.