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Economy & Policy

Taxes in Hungary were cut by HUF 1.5 trillion in January 2022

Finance Minister Mihály Varga compared the tax situation in 2009 with that in 2022, showing the tax cuts implemented since 2010.

The minister pointed out that the PIT was 36 percent in 2009 and is now 15 percent. He added that young people under 25 will be exempt from PIT, as will mothers of four or more children.

The family tax credit was HUF 12 billion in 2009, and it is HUF 980 billion in 2022.

The tax deducted from the wages of retired workers was 49.5 percent in 2009, while now it is 15 percent.

Furthermore, the corporate tax rate was 20 percent then and is now 9 percent.

Varga included in the table that the rate of the simplified public tax contribution (ekho) that was  20 percent in 2009 will be reduced to 13 percent. The employer’s tax is 15 percent in 2022, reduced from 33.5 percent in 2009.

The threshold for VAT exemption has been raised to HUF 12 million, compared to HUF 5 million in 2009, he said.

There will be no administration fee in 2022, compared to HUF 2,200 in 2009, and the inheritance and gift tax for direct relatives and spouses has been abolished, compared to 15–21 percent in 2009.

Lastly, the rate of VAT evasion has been reduced from 22.3 percent in 2010 to 6.1 percent in 2020, the minister pointed out.

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