Hungary support of SMEs outstanding in international comparison, says government

The Hungarian government supports SMEs through tax cuts and from budgetary and European Union resources, and tax discounts for small and medium entrepreneurships grow every year which is outstanding in international comparison, a government official said on Friday.

The tax system also offers specific tax types, tax cuts and eases the administrative burden on SMEs, Norbert Izer, a state secretary of the finance ministry, told a press conference.

From January 2020, the Small Business Tax (KIVA) is cut to 12 percent from 13 percent, making it one of the most competitive rates in the European Union, Izer said. Nearly 50,000 entrepreneurs pay KIVA, he said.

The revenue limit for users of the Itemised Tax for Small Businesses (KATA) was raised to 12 million forints annually from 6 million in January 2017, which resulted in the tripling of the number of users choosing this tax form to 377,000, Izer said.