The bill considering several tax cuts has been tendered to the Parliament at the end of November. The adoption of this proposition will bring forth the following changes from 1 January 2022:
- Social Security Tax („SST”) will be reduced to 13% (from the current 15.5%, which means a cut of 2.5%).
- The rules of Training Fund Contribution have been abolished, along with the tax rate of 1.5%. In other words, employers will enjoy a total of 4% tax reduction from 2022 compared to 2021.
- The respective annual cap of SST payable is increased from HUF 598 920 to HUF 624 000.
- Simplified Contribution to Public Revenues („EKHO”) similarly to SST is decreasing to 13%.
- For small and medium sized enterprises the preferential Local Business Tax rules will stay in force. Therefore, the tax rate will be maximized at 1% and the payable tax advances will be halved – if they meet the conditions laid down by law.
- Tax for small enterprises („KIVA”) will be reduced with 1%, from 11% to 10%.