The Hungarian corporate tax is a profit tax that applies to profits after the deduction of all expenses including direct and general expenses.

KIVA is an alternative to regular corporate tax (TAO), and it is the most favorable tax for small businesses with high profitability, low staff expenses and low dividend payments.

Applies only to enterprise groups with an annual revenue above EUR 750 million. The goal is to have these companies pay at least 15% of their profits as taxes, wherever their seat is.

Payable to the municipality where your business is registered. It is based on your net revenues, meaning your income minus any direct costs such as cost of goods or services that are re-sold.

Value added tax is also known as sales tax in some countries. You will charge VAT only towards individual (retail) buyers or corporate EU-based buyers who are not registered for VAT, meaning that if you are an international trader, you may not charge VAT at all.

The company’s profit after tax can be either saved for future activities or paid out to shareholders as dividend. If you are a Hungarian resident, expect a 13% social security contribution as well as the 15% dividend tax.

Brand representation involves things that make your business hospitable, such as business lunches at restaurants or coffee served at your office.

Hungarian personal income tax is 15% regardless of income bracket. Various benefits available.

Employees pay social security after their salary and automatically become insured in the free healthcare system of Hungary.

Paid on various types of income of natural persons, aimed toward supporting social institutions, such as pensions and allowances.