Significant changes in the Hungarian tax system in 2009
The rate of value added tax will rise from 20 % to 25%, except on certain basic foods (milk, milk products, and products made of grain, meal, starch and milk). The VAT rate on these foods will be 18%.
The rate of social security contributions payable by employers will decrease to 26% in case if the actuarial basis for pension fund contributions does not extend the level of twice the minimum wage. The rate of the employer's contribution will decrease to 1 % in case if the actuarial basis for pension fund contributions does not extend the level of twice the minimum wage. The extent of sick pay decreases as well, basically from 70% to 60%, with a minimum two-year insurance period required.
The corporate tax payer will have the opportunity to set off in equal installments the amount of extraordinary depreciation stated for the tax year but not claimed therein, in the four tax years following the tax year concerned, retrospectively regarding tax year 2008 as well.
Excise tax imposed e.g. on fuel, alcohol and tobacco products will be increased.
The second part of the change package will come into force on 1 January 2010. This aims at radically decreasing the contributions imposed on work and to significantly amend the personal income tax system. Asset tax (real estate tax) is also planned for high-value assets. More news follows on the second part of the amendments after their parliamentary approval.
