9% corporate tax and new allowances in 2017 in Hungary
For the past decades, Hungary has offered the most favorable conditions for businessmen intending to set up a company in Europe. Now new regulations make it even more attractive. Read our tax alert and learn about the 9% corporate tax and more!
9% corporate tax
From 1 January, 2017, corporate tax will be as low as 9%. Corporate tax up till now was already the lowest in Europe (with 10%). The new 9% corporate tax makes Hungary a top destination for not only small and medium-sized companies but also for corporate entities.
Tax allowance and tax reduction for start-up companies
- Start-up companies get tax allowance if they have at least two employees AND if one of the employees is employed in research & development role.
- Moreover, if you grant your workers a housing allowance to pay at least part of their accommodation, that can reduce your corporate income tax.
- If you own a restaurant or café where there is live music, you can get another tax allowance for that. The tax allowance can be used to reclaim up to 50% of the net service cost of live music at your restaurant.
This way Hungary is becoming more and more attractive for investors.
Interested? Make sure to consult your accountant on the above, as they will be able to tell you exactly how much you can save on the above corporate tax reduction and tax allowances. Alternatively, you can also ask for a consultation with the accounting and finance department of Helpers. Call +36-1-317-8570 or send an email to info@helpers.hu.
Find more news on Hungarian tax regulation in 2017.
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