TAX NEWS - June 2010

Hungary Tax: Three key tax changes could take effect on July 1

Three Hungary tax changes announced by Prime Minister Viktor Orban on Tuesday will take effect on July 1, a government source told MTI.

Ten small taxes which were payable by small and medium-sized enterprises will be scrapped, the source who asked not to be named, said.

At the same time, the corporate tax will be cut from 19 to 10 percent for profits below 500 million forints (EUR 1.75m).

The third measure to take effect on July 1 will be the introduction of a new banking tax payable also by financial service providers and insurance firms.

Family taxation and the 16 percent flat personal income tax announced today will probably be introduced on January 1, 2011, the source said.