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Economy & Policy

Hungary has the lowest corporate tax rate

Experts said that Hungary's biggest strengths are its corporate tax rate of 9%, the lowest in the European Union, and its single-rate income tax.

An independent research institute of tax experts, the Tax Foundation, has concluded that Hungary is ranked 13th in the Organization for Economic Co-operation and Development (OECD) countries in terms of tax competitiveness, Finance Minister Mihály Varga told the magazine SZAKma. 

The finance minister said that 10 years ago, Hungary was always at the bottom of such lists, but now it is ahead of countries such as Germany, Austria, US and UK.

In the interview, Mihály Varga said that experts consider Hungary’s lowest corporate tax rate in the European Union, 9%, and its single-rate income tax to be its greatest strengths.

He added that the heart of this economic policy is the tax system, which encourages and supports work, families and investment. The reduction in the tax burden on employers has been justified by the pandemic, while Hungarian citizens have also made it clear that wages must be increased, he added. 

The minimum wage will rise to HUF 200,000 and the guaranteed minimum wage to HUF 260,000 from January 1, 2022. The agreement was helped by a further reduction in the public labor tax of percentage points.

Varga said the policy of tax cuts has worked. Today it can be seen that Hungary is coming out of the crisis with a head start and high growth rates can be expected in the coming years.

Source
www.vg.hu
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