Eternity Law International — News — Hungarian corporate tax in 2022

Hungarian corporate tax in 2022

Published:
August 31, 2022

The state of Hungary has rejected an EU decree that would have required a 15% minimum tax rate on international firms, claiming that the tax would damage Europe’s competitiveness and jeopardise workers. So, now the corporate income tax rate in Hungary remains the same and amounts to 9%. Major firms would be responsible for paying the fee if their yearly turnover is above €750 million. The worldwide agreement that includes the tax change was reached by OECD (the Organization for Economic Co-operation and Development) last year. It has been approved by 136 nations that provide over 90% of the world’s GDP. It is expected that the change would annually bring approximately €140 billion to the state funds.

To take effect throughout the EU, the OECD deal must be incorporated into EU legislation according to official instructions. However, tax policy is one of the few fields where all countries must have a unanimous accord, so even disapproval of one of them can disable the whole deal.

The global minimum tax, according to Péter Szijjártó, the foreign minister of Hungary, is not needed since Europe is already in serious problems. He said that they’re not willing to put jobs in danger by supporting a hike in taxes for Hungarian companies.

In 2022, Hungary’s corporate income tax rate is 9%. With one of the lowest corporate tax rates among the 27 members of the European Union, Hungary has been able to draw significant investments in its manufacturing and auto industries, which have boosted economic development and employment.

Among countries that also didn’t agree with the European directive are Ireland and Estonia. Later, the three countries obtained assurances to allay their worries, including a protracted 10-year changeover phase. The conflict then moved to Poland, although the government there just made a concession when the European Commission approved its long-stalled recovery plan. Hungary’s recovery strategy is still being hampered due to issues with nepotism, fraud, and corruption. As a result, Hungarian resistance to the OECD tax became a fatal problem in the efforts of European Ministers to set the 15% levy.

Hungary’s corporate tax rate

The corporate income tax rate in Hungary is the central assessment that is levied from business profits. Its amount is determined by the net profits businesses make from running their operations, frequently over the course of one fiscal year. The corporate tax rate is a significant source of revenue for the Hungarian government. 

Taxing is working If a company is incorporated in Hungary or has its management headquarters there after being formed abroad.

Moreover, nonnatives have a tax on earnings from a Hungarian source; natives are taxed on all profit. Although branches and subsidiaries are taxed in the same ways, there may be some additional modifications if the head office is located in a non-treaty nation.

Hungary is a good place to invest in terms of taxes as well because of its low corporate income tax base, the extensive array of tax incentives and useful assets (particularly those for advancement and investment), and the steadily falling employment tax burden. This is objectively true even if it seems to be oftentimes overwhelming red tape and the perceived complexity of the tax system.

Please contact us to get more information.

Also, you can view new offers in the categories “Cryptocoins and licensing of cryptocurrency operations”, “Ready-made companies”, “Banks for sale” and “Licenses for sale”.

You could be interested

What is ICO?

If you are tuning out the noise in the blοckchain industry, as well as educating yourself on crypto, you might have come across the notion of “initial coin offering”, also known as ICO. But what does it mean? Is it the same as trading popular coins like Bitcoin? When new projects need to raise money to launch a new token,...

European Blockchain Services Infrastructure: main points

European Blockchain Services Infrastructure: main points The EU is on its way to introducing its European blockchain services infrastructure (in short, EBSΙ), to publicly operated sector which should shortly interact with privately owned facilities. The EBSΙ represents a P2P system of interrelated nodes operating a blockchain-grounded services system. Nodes will be run by the EBP...

Crypto Business in Georgia

Georgia possesses status of one of states being most favorable to crypto-assets and strongly supports their use; there aren’t restrictions regarding crypto-exchanges. Additionally, crypto business in Georgia, located in special zones, should obtain an appropriate permission. In addition, Georgia has provided tax reliance and created a favorable taxation system for organizations whose activities are related...

Company registration in Italy

Italy is a European country that has always been and remains attractive to entrepreneurs. This state is not a standard offshore, however, it offers no less favorable business conditions. Having a representative office in Italy is a sign of the company’s reliability and that it is respected in certain circles. The most popular company forms...

Hong Kong Fintech Week 2023

This years Financial Technology Week marked a significant juncture, providing insights into the trajectory of a dynamic financial future characterized by unprecedented policy and regulatory announcements. This comprehensive exploration delves into the pivotal developments that unfolded during this groundbreaking event. Securities and Futures Commission (SFC) Initiatives: Tokenised Securities-Related Activities: The SFC’s Circular on Tokenised Securities-Related...

Trust in Cyprus: overview

Cyprus has one of the most attractive legislation systems for international tax planning. A low corporate tax rate, exemption from taxes on dividend income, tax transparency, and double taxation treaties with an array of industrialized countries – all these factors create favorable conditions to carry out activities on the island, especially using the structure of...

Discover our services

The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.

Ready-made companies for sale

Companies with a bank account around the world

Banks for sale

Established Banks for sale

Ready-made licenses for sale

Forex, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Licensing

Forex licenses, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Offshore company registration

Expert advice on the acquisition of an offshore company

Open a bank account

Open bank accounts in more than 120 banks around the world
Fill the blank:

Zurich

Dreikonigstrasse, 31A, Stockerhof
+41 435 50 73 23

Kyiv

Baseina street, 7
+38 094 712 03 54

London

Grosvenor Gardens, 52
+44 203 868 34 37

Washington

1629 K St. Suite 300 N.W.
+1 (888) 647 05 40 Toll Free

Vilnius

Gediminas Avenue, 44A
+370 52 11 14 32

Tallinn

Kesklinna linnaosa, Tuukri 19
+372 880 41 85

Edinburgh

Lochrin Square, 1
+44 203 868 34 37

Nicosia

Jacovides Tower, 5 floor
+371 665 550 51

Riga

Esplanade, 7 floor
+371 665 550 51

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai
800938622 Toll Free

Singapore

Level 42, Suntec Tower Three, 8 Temasek Boulevard
+6531594300

Sydney

20 Martin Place
+61 2 888 00 365

Porto

2609 Avenida da Boavista
+351 800 500 206 Toll Free

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7
+995706070360