The government had earlier estimated that some half a million businesses will opt for the new taxes.

Businesses that have annual revenues under Ft 6 million can choose the kata scheme, under which a full-time taxpayer pays a monthly lump sum of Ft 50,000, and Ft 25,000 for a part-time taxpayer. Kata replaces all other taxes, including corporate, payroll and VAT. It can be chosen by single-member companies and unlimited partnerships with solely private individual members.

Companies with staff of 25 or less and annual revenues below Ft 500 million can chose the kiva tax scheme, under which a flat 16% tax applies.

Source: Hungary Around the Clock

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