Hungarian govt provides alternative for those hit hard by small business tax changes

The government is lowering the simplified contribution to public revenues (EKHO) by 13 percentage points from 1 September, according to a decree issued on Tuesday.

The EKHO contribution will be lowered to 15 percent, the finance ministry said in a statement, recommending it as a taxation alternative for artists who will no longer be eligible for the itemised small business tax KATA.

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The annual income threshold for EKHO taxpayers is 60 million forints (EUR 152,000), with the minimum mandatory tax base for social security contribution payments set at the minimum wage.

Another government decree issued on Tuesday gives companies operating in Hungary the option of paying their corporate tax in euros or US dollars, the ministry said. This measure can be of help to businesses that generate some or all of their revenues in foreign currency, it added.

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Source: MTI