How does the Hungarian Small Business Tax (“KIVA”) change in 2017?

Last updated on January 9, 2026.

For up to date information about KIVA, see our 2026 summary on our accounting and finance themed website here.

Who can choose the KIVA construction?

You can be a taxpayer under the KIVA Small Business TAX construction if you meet the following conditions:

• You have not more than 50 employees
• Your total yearly revenue is less than HUF 500 million
• The worth of the total assets in your balance sheet is less than HUF 500 million (when calculating the total revenues and the total assets the figures of the related companies must be summarized)

When can I switch to the KIVA construction?

You can switch to the KIVA construction from paying corporate tax and other contributions regularly anytime you or your accountants consider it favorable. However, you can leave this construction only at the end of the fiscal year.

Changes to KIVA tax base calculation

The base of the small business tax is the sum of the following items:

• the dividend you take
• the balance of the capital changes
• personnel related expenses (that usually means the gross salary of your employees)

Even if the first two items are taken as zero, at least your personnel related costs will be considered for the base of KIVA.

KIVA to replace other taxes and contributions

The rate of KIVA is going to be 14%. It replaces the following taxes and contributions:

• Social contribution (rate 22%)
• Vocational training contribution (rate 1.5%)
• corporate income tax (rate 9%)

Learn more about KIVA!

Consult your accountant to see if the KIVA tax construction for small businesses fits your current situation, strategy and objectives. Learn more before you switch so you can make an informed decision. Contact the accountancy and finance department of Helpers today! Call our office on +36.1.317.8570 or send us a letter to info@helpers.hu. We will be happy to answer your questions.

Find more news on Hungarian tax regulation in 2017.

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