Income taxes

Last reviewed 21 Aug 2023

Tax rate

Generally at the rate of 15 %

Special tax rates

None

Tax liability

Unlimited

on worldwide income (except where DTA restricts the right to assess tax): Natural persons with their residence, habitual abode or vital interests in Hungary

Limited

on certain income in Hungary: Natural persons, who have neither their residence nor their habitual abode in Hungary, on certain Hungarian income

Tax assessment period

Calendar year

Income categories

Income from

1. Self-employment
2. Employment
3. Other income
4. Sole proprietors
5. Gains on transfer of property
6. Capital gains
7. Benefits in kind
8. Securities trading
9. Other income (e.g., rent)

Accounting

None

Sole proprietors: receipts and payments accounting

Loss set-offs

None

Loss carryback

Not possible

Loss carryforward

Not possible

Operating expenses

Expenses of the business

Tax allowable expenses

Expenses for acquiring, securing or maintaining the revenue of the business

Lump sum option

One-man businesses with annual income of less than HUF 32 016 000 (EUR 80,730): flat rate deduction for business expenses

Motor vehicles

Deduction of actual costs or rate per kilometre

Social insurance

Non deductible

Withholding tax

Withholding tax on income calculated using tax table is generally at the rate of 15 %

Interest

15 %, or as reduced by the applicable DTA

Royalties

15 %, or as reduced by the applicable DTA

Dividends

15 %, or as reduced by the applicable DTA