INTERNATIONAL TAX PLAZA - Hungarian Government announces that it plans to introduce a flat corporate income tax rate of 9%

Details: Published: 18 November 2016

On November 18, 2016 the Hungarian Ministry for National Economy issued a press release announcing that at a press conference organized on the sidelines of the Regional Digital Conference in Budapest, the Hungarian Minister for National Economy announced that Hungary’s current corporate income tax rates of 10% and 19% are set to be reduced to a flat rate of 9% as of next year.

According to the press release the proposal is to be approved by employer and employee organizations this week, after which the Ministry could submit a bill to parliament. This would enable amendments to enter into force as of January 1, 2017.

Currently the Hungarian corporate income tax rate is 10% up to a tax base of HUF 500 million (approximately 1.6 million Euro) and 19% on the excess.

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