- 30 Nov 2023 6:54 AM
- Hungary Around the Clock
Options on share purchases will also be exempt from tax obligations.
According to the new regulation, unlisted micro and small companies that have been operating for no more than five years, which have not yet paid dividends and which were not created through mergers or splits, are considered "startups".
Shares and options must remain with the executives or employees for at least three years, in order to retain their tax-free status.
The sale of such shares will be taxed as capital gains, which is far less than the labour tax, Portfolio calculates.