15 December 2016 Hungary adopts single-digit tax rate from January 1, 2017 The Hungarian Parliament on December 12, approved the amendment of the corporate income tax legislation through which the statutory corporate income tax rate will be reduced to a flat 9%, the lowest rate among the 28 member states of the European Union. The new tax rate will be effective from January 1, 2017. It is a significant change from the current 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. Document ID: 2016-2142 |
