How does the 9% corporation tax rate affect your business?

Changes to the corporation tax rate in 2017

From the 1^st of January 2017, Hungary has lowered its corporation tax rate to 9%, making it the lowest business tax in Europe. During the previous system until the end of 2016, the government taxed companies at a rate of 10% on profits up to HUF 500 M (EUR 1.7 M) and 19% on profits above that threshold. Now a single band has been introduced applying equally to all businesses with a flat rate of 9%.

The new corporation tax rate has a great impact on the finances of small businesses, but has brought an even larger tax reduction for large corporations, as seen in the chart below:

And…

As you can see, the more profit your corporation makes, the more you can save on operation your company in Hungary.

Added value from Helpers

Helpers Hungary offers comprehensive solutions for setting up and managing Hungarian businesses, specializing in assisting international entrepreneurs and businessmen. Contact us for further information and let our tax advisors assist you with better understanding your corporate finances in Hungary.

Do you want to know more about taxation in Hungary? Do you need a reliable accounting partner? Do you need help setting up your own company in Hungary? Contact us at info@helpers.hu or call our office on +36 1 317 8570 to receive a free consultation.