New Hungarian Tax Rules in the Focus of Investors

In the summer of 2010, the Hungarian Government decided to establish one of the most favorable corporate tax systems within the European Union. To this end, the former 19% corporate tax rate has been reduced to 10%. Limitation to the 10% tax rate is a maximal annual turnover of HUF 500.000.000 (approx EUR 2.000.000). As of 2013, the Government plans to spread the 10% tax rate also to corporations that are above the current turnover limit.

In addition to the above, a special exemption applies to the taxation of royalty income. In case of income that originates from royalty payments, only 50% of that income needs to be declared as tax base. As a result, the effective tax rate for royalty income is 5%.

For more information on this matter, please contact FirmaX Hungary. Our professional tax consultants will advise you on the set-up of the most favorable tailor made tax structure that fits to your needs.