For many small businesses, a flat tax may be the best option next year if the Finance Ministry’s proposal is voted by Parliament, Iser Norbert said.
The Secretary of State for Taxation at the Ministry of Finance told MTI that the Tax Office is currently registering 15,000 individual owners exempt from taxes at a fixed rate, which could increase five times next year as a result of the new regulations. The first beneficial change was the new tax exemption threshold: income will be tax-free up to half of the annual minimum wage, which means that in terms of this year’s values and a fixed cost of 40%, this means that
Up to approximately 1.7 million HUF in revenue, fixed-rate taxpayers are not required to pay personal income tax.
In the case of those entitled to 80 percent cost accounting, the tax exemption amount is higher, so photographers, hunters, hairdressers, taxi drivers, or phone mechanics who choose flat tax (calculated at the minimum wage value for this year) will not be subject to Personal income tax amounts to approximately 5 million HUF.
According to Norbert Iser, the new regulation could make it easier for individuals to work in many part-time jobs, and also help them become entrepreneurs.
This makes it easy, simple, and with virtually the least amount of risk to interfere with any business
– This has been taken into account, adding that there is no activity limit for the new consolidated rate, only revenues:
Next year, flat tax can be chosen up to ten times the annual minimum wage, which is now HUF 20,088,000.
For those who do retail activities, the income threshold is higher, and they can also pay flat tax if their income does not exceed fifty times the annual minimum wage.
According to the politician, calculating income will also be much simpler and more convenient. The number of cost ratios implemented will be reduced from the current eight to three. Stakeholders can determine their next year’s income by deducting 40, 80 and 90 percent of their income from their income.
Nurier Iser also noted that the new rule, which is helping small businesses, is an important component of tax changes to help restart the economy. The bill containing these was introduced by the Finance Ministry on May 11, and if the bill is voted on by Parliament, the tax burden will be reduced further next year, there will be less management and the economy will continue to be bleached, the Foreign Minister concluded.
