The Parliament has adopted the „mini” tax law changes package

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%.