Parliament Votes To Reduce Payroll Tax
- 13 Dec 2016 9:00 AM
Parliament approved a bill that reduces the payroll tax from 27% to 22% from next year, and to 20% from 2018. The bill adjusts the healthcare contributions accordingly, reducing them from 27% to 22% for 2017. Economy Minister Mihály Varga submitted the bill to parliament earlier in December.
The planned payroll tax cut was announced in November after the government reached an agreement with employers and unions on a big minimum wage increase.
The bill also establishes a 9% flat-rate corporate tax from Jan. 1. The corporate tax rate is currently 10% on a tax base up to 500 million forints (EUR 1.6m) and 19% above that. The law was passed with 146 in favour, 7 against and 27 abstentions.
Republished with permission of Hungary Matters, MTI’s daily newsletter.
LATEST NEWS IN business