How do Hungarian personal income tax and social contributions change in 2017?

Personal income tax in Hungary is currently 15%. Personal income tax is deducted from the gross salary of employees, who (after the deduction of other contributions, e.g. pension contribution, health insurance, labor market contribution) get their net salary. It is the employer who transfers taxes and contributions to the authorities. This will not change in 2017 – let’s see what will!

Personal income tax return procedure

If a taxpayer is registered for electronic tax filing and does not request their employer to prepare their tax return documents for them (or the employer does not prepare their tax return documents for them), the tax authority will prepare a draft for the taxpayer. This makes tax declaration even more convenient for taxpayers.

Expense reimbursement for using your own car

If you or your employee uses their own car for going to work, they are entitled for expense reimbursement. The tax-free amount for this has been HUF 9.00 for each kilometer.

• From 2017 on, the tax-free amount of expense reimbursement increases to HUF 15.00 for each kilometer.

Social contribution

Social contribution has been 27% up to now. This is a contribution to be paid from the gross salary of your employee.

• From 2017 on, social contribution is reduced to 22%.

Want to learn more?

Make sure to consult your accountant in order to keep compliant with the latest regulations and take advantages of the benefits and allowances available to you and your employees. Contact the accounting and finance department of Helpers, where our English-speaking accountants would be more than happy to help you run your company as cost-effectively as possible. Call +36-1-317-8570 or send an email to info@helpers.hu.

Find more news on Hungarian tax regulation in 2017.

Watch this space

© 2004 – 2019

Business services

Additional services

Immigration services

Invest in Hungary