Official: Tax cuts to continue in 2021

Families looking to buy homes and small businesses will be among the beneficiaries of the government’s tax cuts in the year ahead, finance ministry state secretary András Tallai said in an interview in daily Magyar Nemzet’s Saturday edition.

Hungarian taxpayers by now can expect the government to introduce tax changes at the start of the year that benefit them, Tallai said.

The state secretary noted that the VAT rate on newly built homes is reduced from 27 percent to 5 percent from Jan. 1. Also, all home purchases made with the government’s CSOK housing subsidy scheme are exempt from duties, he said.

For small and medium-sized businesses, the government has decided to halve the local business tax rate.

Companies with annual turnover of 4 billion forints (EUR 11.0m) or less and with fewer than 250 people on the payroll qualify as SMEs with regard to the measure, the state secretary noted. The tax cut will help some 800,000 businesses, he added.