The Parliament of Hungary approved a package of previously announced tax law changes for 2016 on 16 June 2015. According to the approved Bill the personal income tax rate will reduce from 16% to 15%. The tax allowance for individuals raising two dependents will double over four years to HUF 20,000 per child per month beginning from next year.
The VAT rate on unprocessed pork will be substantially reduced from 27% to 5%.
Also, according to an agreement signed on 9 February 2015 between the government of Hungary and the European Bank for Reconstruction and Development (EBRD), the top rate of the bank levy will be reduced to 0.31% of total assets in 2016 from 0.53% this year and will be lowered further between 2017 and 2019.
