Hungarian Gov’t Offers Bigger Tax Cut in Minimum Wage Talks
- 28 Oct 2021 7:28 AM
- Hungary Around the Clock
The government is ready to cut the small company tax from 11% to 10% in order to reach an agreement on increasing the minimum wage to Ft 200,000 per month, Innovation and Technology Minister László Palkovics said after negotiations on Wednesday.
The small company tax is a special simplified tax payment regime, which is optional for companies with annual revenues of up to Ft 6 billion.
The 11% tax replaces the social contribution and vocational training contribution paid on wages, which otherwise together amount to 17% of wages.
The newly offered tax cut would save employers some Ft 13 billion.
As before, the government maintains that it will cut labour taxes by four percentage points, saving employers Ft 660 billion, Palkovics added.
Minimum wage talks continue next week.
MTI Poto: Tibor Illyés
XpatLoop Media Partner
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