Last updated on 29 March 2021.
For up to date information about KIVA, see our 2021 summary on our accounting and finance themed website here.
KIVA is short for Small Business Tax in Hungarian (“Kisvállalati Adó”). It is a tax construction that can be chosen by small businesses if they fulfill certain conditions. Let’s see how KIVA changes in 2017.
You can be a taxpayer under the KIVA Small Business TAX construction if you meet the following conditions:
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.
The base of the small business tax is the sum of the following items:
Even if the first two items are taken as zero, at least your personnel related costs will be considered for the base of KIVA.
The rate of KIVA is going to be 14%. It replaces the following taxes and contributions:
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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