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18 November 2016

Hungary announces single-digit tax rate starting in 2017

Hungary's Prime Minister on November 17, announced the Hungarian Government's intention to reduce the statutory corporate income tax rate to 9% . The tax cut is expected to take effect in 2017, and it is a significant change from the currently adopted progressive tax system whereby the first HUF500 million (approximately US$1.8 million) of taxable income is taxed at 10% while the excess is taxed at 19%.

A Tax Alert prepared by Ernst & Young's Eastern European Business Group in New York, and attached below, provides additional details.

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ATTACHMENT

Full text of Tax Alert 2016-1978

Document ID: 2016-1978

 

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