Tax Cuts On Payroll 2022

Another significant tax cut took effect in Hungary from January 2022.

Employers’ wage costs continue to fall.

  • The rate of social contribution tax is 13% instead of 15.5%.
  • The 1.5% vocational training contribution paid by domestic companies has been abolished.
  • Those who pay the Small Business Tax (KIVA) instead of the above have reduced their burden from 11% to 10%.

The burden of wages has fallen dramatically in recent years, leaving room for improved employment and rising wages.

If you need further information, feel free to contact us.

Recent Posts

VAT Registration in Hungary - Leinonen
March 16, 2026

VAT Registration in Hungary: What do Businesses Need to Know in 2026?

Having a robust understanding of rules and regulations surrounding VAT registration in Hungary saves significant money, time, and hassle for businesses. In this article, we…

Continue reading
Annual Reports in Hungary - Leinonen
March 12, 2026

Annual Reports in Hungary

The financial statements, commonly referred to as annual reports, contain essential information for business owners and management. Although accountants generally use the term financial statements…

Continue reading
Payroll for Foreign-Owned Businesses in Hungary - Leinonen
February 11, 2026

A Guide to Payroll for Foreign-Owned Businesses in Hungary

Serving as a bridge between the east and west, Hungary is ideally positioned for trade across Europe. It is an EU member state already favoured…

Continue reading