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Economy & Policy

Family farms and producers receive significant tax breaks

Hungarian agriculture and the food industry employ more than half a million people in Hungary, and now workers in the industry are getting a significant tax benefit.

The Minister of Agriculture István Nagy announced on Saturday that the Parliament had adopted the bill on family farms, so the new legislation may enter into force on January 1, 2021.

The bill was submitted by the Ministry of Agriculture (AM), the National Chamber of Agriculture (NAK) and the National Association of Hungarian Farmers’ Circles and Cooperatives (Magosz).

Thanks to the three new forms of operation, taxation will become more favorable and easier for almost 300,000 primary producers and about 83,000 workers on family farms; plus, the operation of family farms will be renewed and simplified.

According to the new legislation, primary producers will be exempted from preparing a tax return for income of less than HUF 1 million in 2021. They don’t even have to pay taxes up to HUF 10 million, and up to HUF 20 million, the level of the social contribution will be very favorable.

The president of the chamber, Balázs Győrffy, expects serious investments and developments from primary producers. The government wants as many domestic small and medium-sized enterprises as possible to develop continuously.

To help achieve this, a HUF 5 billion tender is now being announced, specifically for the development of companies operating in small and disadvantaged settlements, and farmers can apply for HUF 2 million to 60 million. 
Details of the application are available on the Széchenyi 2020 website.

Source
www.origo.huwww.hirado.hu
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