Tax On Rent Incomes To Be Eliminated

  • 3 May 2017 9:00 AM
Tax On Rent Incomes To Be Eliminated
The government is planning to abolish the social contribution tax EHO on home rental income from 2018, business website Portfolio has learnt.

In the present system, homeowners must pay personal income tax on rental income, plus EHO, if their annual rental income from the home reaches or exceeds Ft 1 million.

The 14% tax is levied on all such income, not only the part above Ft 1 million.

This system penalises high home rents but homeowners have avoided it by, for instance, reporting lower rents to authorities.

Source: Hungary Around the Clock

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