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The Ministry of Finance has submitted a bill on tax exemptions to Parliament. According to the portfolio, if parliament votes on the amendments, the small business tax (kiva) will be more favorable next year: not only because the tax rate will be lowered to 11 percent, but also because more companies will be able to choose. The income threshold will increase from the current 1 billion guilders to 3 billion, according to a statement posted on the Ministry’s website.
The tax office can prepare a draft VAT return for half a million companies from the second half of 2021. It will also be easier to pay off tax debts. People with a debt of up to one million guilders and companies classified as trustworthy based on their tax history can request a 12-month installment payment with no installments on their debts, with a simple application.
Significant deductions can also come from a business tax. Construction activities that last less than 180 days will no longer be subject to the business tax on temporary activities next year, which, in addition to the five percent VAT on new homes, could give another boost to the national construction industry , according to the Ministry.
The tax incentive system will be simplified and made more transparent. The family tax credit model for certain diseases is called. A personal allowance is also calculated from next year’s taxable income. The amount of the discount continues to grow year after year along with the minimum wage.
Earlier, Orban said that he would likely be in control of himself. They want to remove the administrative rules that are holding back economic growth.
With the exception of the issuance of certain documents, as of 2021, the administrative procedures of first instance will be exempt from tariffs, the administration of one and a half million cases of the public administration being free of charge per year. Next year, all Hungarian fruit-producing citizens can cook 86 liters of fruit brandy per household in their private kitchen duty-free. Hungary must also apply the rules of the European Union’s tobacco tax directive. The government will increase the excise tax on tobacco products in two steps starting on January 1, so that on April 1, 2021, the excise tax rate will reach the lowest minimum level required by the European Union, according to a statement from the Ministry of Finance.
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