Changes in Government Taxes, Hungary 2023

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The Hungarian parliament enacted the Autumn Tax Package towards the end of 2022. It consists of several changes that are being implemented in 2023. These affect personal income tax, corporate tax, local business taxation, VAT (Value Added Tax) and other related departments. 

Below we look at these changes and how they affect individuals and businesses in Hungary. So, if you’re in trouble with taxation, then consider working with the top tax relief companies to help you out. 

You can begin this new taxation period on a clean slate, as these companies have tax experts who can solve your tax issue. Otherwise, let’s look at the new taxation period in Hungary today.

Personal Income Tax Changes

A couple of changes are being implemented in taxation that affects individual citizens of Hungary in various ways. One of these is using group transportation for commuting. Hired or leased vehicles for this particular use are to be exempt from taxation. 

This is, of course, if they meet specific statutory terms and conditions. These include the state that the transportation is occurring in, holding at least four employees, and the transportation is for work.

More self-employed individuals can consider the flat tax-rate scheme as the condition to consider the previous year’s income has been removed. However, they’ll have to meet new income limit requirements.

In addition, self-employed individuals are prohibited from the flat tax-rate scheme when they’re going through the cessation process. This is during the year of ceasing and 12 months after.

Are There Any Changes Affecting The Business World?

The changes made in Hungarian taxes for 2023 affect individuals and businesses too. So, if you’re an entrepreneur, a small business owner, or part of the corporate world, then look out for these changes:

Entrepreneurs

Due to the new way of calculating taxes and contributions, called the “roll up,” and the conditions concerning flat rate tax, there are partial changes to the entrepreneurs’ calculation of social security contributions. They’ll be due every quarter now instead of monthly. 

Corporate Tax

Corporate income tax can now be paid in US dollars and euros. However, when paying in foreign currency, you must notify the government. Also, corporations still need to declare taxation in Hungarian forint.

Fiduciary trust activities, transfer of assets involving investment income, and electric charging stations are exempted from taxation. This has certain conditions in place.

Local Business

Local businesses can also pay taxes in US dollars and euros. The tax should still be assessed and declared by the HUF. With that, the assessment method has also been changed. The changes ensure that taxation is easier for small businesses and self-employed people.