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Index – Economy – Businesses can expect more tax breaks next year

Index - Economy - Businesses can expect more tax breaks next year

Finance Minister Mihaly Varga announced in his Facebook message that the 2022 tax will be introduced starting next July, the social contribution tax on wages will be reduced to 15 percent, and the vocational training contribution paid by companies will be included in the tax. Laws.

However, this is still only a relief to companies, it is true that with the abolition of the contribution of vocational training, that is, its incorporation into the burden of the employer, which ranges between 15 per cent, this means a significant reduction of 2 per cent.

In doing so, the government is also complying with the social contribution tax reduction commitment contained in the six-year wage agreement. The Finance Minister also promised to simplify the tax system, which would save companies around 250 billion HUF at the aggregate level.

He also announced that they would also facilitate the imposition of taxes on fixed prices. He put it this way

From 2022, a flat rate tax can be selected up to ten times the annual minimum wage.

However, for retail activities a multiplier of 50 can actually be applied when a company is considering choosing between each type of tax. A single owner who chooses the flat tax system does not have to pay personal income tax for half of the annual minimum wage. They will also provide family tax relief for about 70,000 affected entrepreneurs.

Another important change is the abolition of the special tax on managers of venture capital funds and stock markets.

The fourth rebate also helps keep overheads cut – Mihaly Varga noted, then announced that energy suppliers could deduct their losses from their pre-tax earnings in the next five years. In addition to the Hungarian capitalists’ heavy shopping in the energy sector, the government is also helping a number of state-owned companies, given that there has been a steady effort recently to increase state ownership in this sector.

The government will also settle taxes on income from cryptocurrencies: the current tax burden of 30.5 percent will be reduced to 15 percent. The measure is expected to make hidden revenues visible, whitewash the sector, and drive forint billions of budget revenue. It is doubtful, of course, why anyone who has managed this entire income so far would want to take transparency into owning a fund that would provide anonymity.

In any case, according to the head of the ministry, they want to continue the policy of helping families and companies, as they will also deal with the proposal to amend the tax law submitted to Parliament on Tuesday afternoon.

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