KATA – Start-up friendly tax system in Hungary

KATA is a mosaic word for the so called Fixed-Rate Tax of Low Tax-Bracket Enterprises and on Small Business Tax whose detailed rules are regulated in the Act CXLVII of 2012 on the Fixed-Rate Tax of Low Tax-Bracket Enterprises and on Small Business Tax (afterwards: KATA Act). This tax system has been introduced originally for small taxpayers, i.e. low tax-bracket enterprises and for small businesses and allows a system for…

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Overview of taxation of corporates/ companies/ business associations in Hungary

Tax system in Hungary is classified into 2 fields: central (e.g. corporate income tax, VAT) and local levels (e.g. local business tax charged by the local municipality). For both of the fields is the so called self-assessment-principle determinative. But in certain cases the Hungarian tax authority, the National Tax and Customs Administration (NAV) is also entitled to enforce and collect tax.

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