Amendments to personal income tax laws passed the Hungarian
Parliament in November last year, and came into effect on 1 January
2016.
The main purpose of the amendments is to support the Hungarian
Government's priorities of economic growth and state budget
stability. Therefore, there are no major structural changes which
were characteristic of previous years but rather small adjustments
that are intended to decrease the administrative burden of
taxpayers and showcase a business 'friendly' Tax
Authority.
Here are the most important changes in relation to income from
employment:
Personal Income Tax (PIT)
The most important change from the private individual's
point of view is that the flat rate of PIT is reduced by 1% - from
16% to 15%. The decrease in personal income tax also affects the
employer's burden on benefits in kind, which is now decreased
by 1.19% (from 35,70% to 34,51%).
