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Hungary’s tax changes in force from July 1 to save taxpayers one billion euro
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Changes to contributions and tax preferences that will come into force from July 1 will save taxpayers 350 billion forints (EUR 982.6m) a year, according to the state secretary for tax affairs.
A two-percentage-point reduction in the payroll tax to 15.5 percent will save businesses 160 billion forints in the next six months, thereby preserving jobs and supporting the creation of new ones, Norbert Izer said in an interview to MTI.
The reduction is part of a deal the government sealed with employers and unions late in 2016 linking payroll tax cuts to wage rises.
Under the agreement, the payroll tax was reduced from 27 percent in 2016 to 22 percent in 2017 and 19.5 percent in 2018.
From 2019, the agreement stipulates that the payroll tax will be reduced a further four times by two percentage points on each occasion as long as the gross average private sector wage rises at least 6 percent year-on-year in the first quarter of the given year.
So if i unsersta d correcrly we will have to pay 18.5tax in total on our salary as comlared to previous 27 %