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Finance Minister announces 750 billion forint tax cut

picture of Mihály Varga

The Economic Cabinet has decided on a 750 billion Ft. (US $2.34 billion) tax cut, with taxes on labor to decrease in 2022, announced Finance Minister Mihály Varga on Facebook.

As the minister posted:

  • the social contribution tax rate will be cut by 2.5% to 15%
  • the vocational education contribution of 1.5% will be abolished, and a social contribution tax will not have to be paid on trainee salaries for certain types of vocational training programs
  • the small business tax rate will be cut to 10%
  • benefits to small and medium-sized businesses will be extended in regards to the local business tax, which will be set at a maximum tax rate of 1% next year.

Some other significant tax changes to take effect next year will affect sole proprietors favorably, offer a personal income tax exemption for persons under age 25, and benefit public trust funds. There will also be tax changes affecting higher education grants, the utility reduction scheme, and cryptocurrency trading.

Finance Minister Varga recently told the German-Hungarian Chamber of Industry and Commerce that the government’s massive spending on domestic priorities was unconnected to elections expected to take place in the spring.

[Index][Photo: Mihály Varga / Facebook]

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