tax

Budapest (MTI) – Parliament on Monday approved a bill that reduces the payroll tax from 27 percent to 22 percent from next year, and to 20 percent from 2018.

The law was passed with 146 in favour, 7 against and 27 abstentions

The bill adjusts the health-care contributions accordingly, reducing them from 27 percent to 22 percent for 2017.

Economy Minister Mihály Varga submitted the bill to parliament earlier in December. The planned payroll tax cut was announced in November after the government reached an agreement with employers and unions on a big minimum wage increase.

The bill also establishes a 9 percent flat-rate corporate tax from Jan. 1.

The corporate tax rate is currently 10 percent on a tax base up to 500 million forints (EUR 1.6m) and 19 percent above that.

Source: MTI

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