Duties & Personal income tax- Changes in Hungary 2015

17. December 2014 | Reading Time: 1 Min

From 1st January 2015, there will be significant changes in the Act on Rules of Taxation in Hungary. In our present news we present the most imporatnt tax changes for the Real estate transfer tax and the Personal Income tax in Hungary 2015.

Real estate transfer tax 2015

Acquisition of shares in a “company owning Hungarian real estate ” falls under the scope of the real estate transfer tax in certain , legally regulated cases. When qualifying a company as company owning Hungarian real estate , then pursuant to the new regulations, during the assessment of the 75% rate of real estate property to the balance sheet total, accruals shall also be ignored in addition to liquid assets and monetary receivables .

Changes in the Personal income tax

Cafeteria – Personal Income Tax

Besides the reduced, 35,7% tax burdens (16% personal income tax and 14% healthcare contribution payable on the 1,19 times multiplied contribution amount), the maximum total yearly amount of employees’ cafeteria elements (e.g. Erzsébet voucher, local passes) will be reduced from 500.000 Forints to 200.000 Forints. The rate of tax burdens on the cafeteria elements exceeding this amount is 51,17% in total.

tpa_horwath_hungary_newsletter_tax_amendments_2015_1.pdf