On 14 November 2017, the Hungarian Parliament approved a package of tax which includes measures related to the tax procedural rules and also some other provisions that will affect corporate and individual taxpayers.
The new tax legislative package includes following measures:
- Corporate income tax treatment of a “development” tax allowance and a “tax donation”
- Local business tax and the definition of sales revenue;
- The new law will rephrase the tax audits rules including the types of tax audits available, time limits for conducting tax audits, the rules for appeals;
- A small entrepreneurs’ tax option for law firms;
- Reduced rates of value added tax (VAT) include a new 5% rate of VAT on internet access and certain foods (reduced from 18% or 27%);
- Individual (personal) income tax measures on “tax-free” benefits and donations to Hungarian churches;and
- Revised rates of social security tax and health care charge.
