Finance Minister Announces 2022 Tax Cuts
Finance Minister Mihály Varga on Tuesday announced measures to cut and streamline taxes next year that the government will soon propose to lawmakers.
In a video message posted on his Facebook page, Varga said the payroll tax would be reduced to 15 percent from next July, while the vocational training contribution would be rolled into the payroll tax – with no impact on tax preferences – resulting in a two-percentage-point drop in the tax on labour.
At present, the payroll tax is 15.5 percent and the vocational training contribution is 1.5 percent.
Varga said the changes would save businesses 250 billion forints (EUR 690m) a year. He said the proposed legislation would make it easier for sole proprietors to opt for flat-rate or lump-sum tax forms, as eligibility thresholds are raised to ten times the annual minimum wage, or 50 times the annual minimum wage for retail activities.