Hungary: proposed 2011 tax package

Hungary
05/11/2010
Download PDF

A substantial reduction in tax rates is included in the 2011 tax package currently being discussed by Parliament.

The proposed rate change and other key points of the bill are:

  • a 16% flat rate of personal income tax on all kinds of income, including passive/investment income such as dividend and interest payments.
  • the effective personal income tax rate would be 20.32% as the ‘supergross’ tax base (ie gross income plus employer’s contributions) would continue to apply
  • certain benefits-in-kind would be subject to an effective 19% personal income tax rate
  • a cap would be introduced for social security contributions payable by the employer as well
  • a flat 10% rate of corporate income tax would replace the current progressive rate from 2013
  • the 30% withholding tax on interest, royalties and certain service fee payments made to non-treaty recipients would be abolished
  • the Hungarian Tax Authority and the Hungarian Customs Authority would be merged into a single body vested with police and investigative powers

The bill is likely to be passed by mid-November. Further details will be provided once the proposals are adopted.

Search Filters

Advanced Search

Key contact

Related content

  • 27/03/25

    Türkiye adopts first Cybersecurity Law

    On 19 March 2025, the Cybersecurity Law (No. 32846) went into force in Türkiye after being introduced into the Turkish parliament, the Grand National Assembly, on 10 January.Passage of this law is considered a milestone in Türkiye’s effort...
  • 26/03/25

    2024 EU AI Act: a detailed analysis

    The EU AI Act is a significant regulatory framework aimed at harmonising the development, deployment, and use of AI within the EU. This comprehensive regulation, which went into effect on 1 August 2024, seeks to ensure safety, protect fundamental rights,...
  • 26/03/25

    Spring Statement 2025 – key tax announcements

    The Chancellor delivered the Spring Statement today, as planned. The Spring Statement speech was relatively short compared to those delivered at prior fiscal events, finishing in just over half an hour. In line with recent press speculation and statements...