From 2012, new rules will apply to personal income taxes and
social security contributions.
Businesses should update their existing payroll and benefit
schemes to reflect the changes.
Personal income tax
Progressive personal income tax will be re-introduced and
'super-grossing' of the tax base will be abolished below
monthly gross income of HUF 202,000 (c. €650). This
means the effective tax rate will be 16% below the threshold and
20.32% on the excess.
Low earners' tax credit will also be abolished, but the
family allowance will remain.
In-kind benefits
Benefits previously requiring no health care contribution will
now be subject to a 10% contribution, and will be capped at HUF
500,000 (c. €1,613) a year in total, with any excess
subject to the 27% rate.
