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Economy & Policy

Hungary’s tax exemption is unique in the European Union

Hungarian families and young people benefit from unique PIT exemption.

Last year, about 57,000 mothers with four or more children did not pay personal income tax (PIT), a total exemption of some HUF 22 billion in 2020, said András Tállai, Parliamentary State Secretary of the Ministry of Finance.

The state secretary highlighted that family support has been growing since 2011. 

In 2020, family benefits were expanded with another element. Starting January 1, 2020, women who have four or more children no longer pay PIT on their income. The exemption is not limited to their own children, and children over 18 years must also be taken into account. It is also important that the PIT exemption does not preclude the use of the family allowance. A mother can claim the child allowance from her own employee contribution or together with the father, Tállai explained.

A total of 38,000 mothers in January 2020 and 42,000 in February 2020 applied for the PIT exemption. In 2020, altogether 57,000 mothers with four or more children were exempted from the PIT payment obligation, the secretary of state said.

Through its lifetime tax exemption, families could be left with an unprecedented amount in 2022, which could be further increased by the family tax refund. If economic growth exceeds 5.5 percent, families with children will receive back their PIT paid in 2021. 

And from January 1, 2022, yet another exemption will come into force. Those under the age of 25 will be entitled to PIT exemption up to the average wage, which could affect roughly 300,000 young people.

Source
www.vg.hu
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