The most significant modifications to the Personal Income Tax Act effective as of 1 January 1997 were as follows:
1. A new tax table is applicable to total taxable income as follows:
Taxable Income (Ft) Tax Payable (Ft)
0-250,000 20%
250,001-300,000 50,000+22% on excess over 250,000
300,001-500,000 61,000+31% on excess over 300,000
500,001-700,000 123,000+35% on excess over 500,000
700,001-1,100,000 193,000+39% on excess over 700,000
1,100,001- 349,000+42% on excess over 1,100,000
2. A tax credit of 20% of total salary, but not more than HUF 3,600 / month, is available with respect to salary income. The tax credit can be taken into consideration when calculating the tax advance.
