Tax cuts will continue and the tax system will be simplified in Hungary next year

English2021. máj. 18.MTI

He pointed out that as of July next year, the payroll tax rate will be reduced to 15 percent, and the vocational training contribution will be rolled into the payroll tax, with no impact on tax benefits. The tax on labour will thus be reduced by 2 percentage points and the tax system will be further simplified. These changes will save businesses 250 billion each year, he added. 

Flat-rate taxation will be easier and cheaper from next year; this form of taxation will be available up to ten times the annual minimum wage or up to fifty times the minimum wage for retail activities. Sole proprietors who opt for this tax form will be exempt from personal income tax up to half of the annual minimum wage, and may also take advantage of the family tax credit. The measures will positively impact 70,000 sole proprietors. 

As a third measure, we will help market players who are actively involved in relaunching the economy. From next year, venture capital fund management companies and stock exchanges will not have to pay a sectoral tax 

the Finance Minister said.

In order to preserve utility price cuts, energy suppliers will be allowed to deduct losses from their pre-tax profit for the next 5 tax years.

Mihály Varga also mentioned that significant steps will be taken to legalize earnings from cryptocurrencies. 

The tax on cryptocurrency earnings will be cut from 30.5 percent to 15 percent, potentially bringing billions of forints of revenues into the budget. 

The government will continue to pursue an economic policy that helps families and businesses, the finance minister summed up the main objective of the bill on tax cuts.