Corporate tax in Hungary is still 9%, which is the lowest in the European Union. This, with the simple and fast incorporation procedure makes Hungary an ideal place so set up your first EU company and start trading in Europe. Read on for the latest allowances and reductions you can apply for.
If your company sponsors a team of prominent sports, the sponsorship can be deducted from the corporate tax. Starting with 2018, one more sport is added to those already in the list. This way you can now sponsor teams of volleyball as well as football (soccer), basketball, handball, water polo and ice hockey.
Having chargers for electric vehicles is now compulsory for new big stores, but it can add a trendy and attractive touch to your office or seat. If you install a charger, that is surely an investment – which might or might not be returned. From 2018, the part of the investment that is not returned can be deducted from your corporate tax base.
Since 2017, if you invest in a Hungarian startup registered as an “early stage” company, the investment can be deducted from your corporate tax base. One of the conditions used to be that the startup should have at least 2 employees, and at least one of them should be a researcher or a developer. From 2018 on, there is no such restriction of the occupation of the employees of the startup.
If you decide to build a rental home where your employees can live, this certainly brings long-term benefits to the town in which you are constructing the building. As a result, your costs can be deducted from the corporate tax base of your Hungarian company.
Your English-speaking accountant is your most valuable ally in making company-operation in Hungary as cost-effective as possible. Contact your accountant if you have any questions, or if you want to learn more about corporate tax allowances available to your Hungarian company.
For other articles on the 2018 changes to taxation, check out the accountancy section of the Helpers blog.
Company owners are allowed to take dividend from the profit of the company. From 2019 January, regulations on dividend tax change: instead of the health contribution, a social contribution tax is to be paid to the tax authority. Personal income tax AsRead More