TAX LAW CHANGES 2022
Small business tax (KIVA), Itemised tax of small businesses (KATA)
Due to the law amendment, from 1 January 2022, the small business tax (SIT) rate will change from the current 11% to 10%. This measure will further increase the attractiveness of the already very popular KIVA taxation. VGD Hungary will assist potentially eligible businesses in modelling the tax burden under both the KIVA and corporate income tax, taking into account their individual circumstances, to determine the most optimal taxation form for them.
Itemised tax of small businesses (KATA)
In line with the reduction in social contribution tax, the basis for calculating pension and social benefits for entrepreneurs subject to the small business specific tax (KATA) will slightly change from the current HUF 102,000 per month to HUF 108,000 per month, while the basis for calculating pension and social benefits for those paying higher specific tax will change from the current HUF 170,000 per month to HUF 179,000 per month.
Updated: 10 December, 2021
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Should you have any questions regarding the latest tax law changes, the tax experts of VGD Hungary will be pleased to assist you.
This newsletter provides general information and does not constitute tax advice.
