The tax package endorsed today helps cut bureaucracy, bolster enterprise competiveness and combat the black economy, Minister of State for Parliamentary and Taxation Affairs András Tállai said.

The new regulations include a number of incentives for enterprises, and they will significantly reduce the tax burden of SMEs, he added.

As a result of changes, the turnover ceiling for the Small Taxpayer Lump Sum Tax (KATA) and the limit on VAT exempt status are set to increase, regulations on healthcare contribution are set to become simpler and the tax authority will in the future assist instead of sanction taxpayers who commit unintentional mistakes.

As another favourable change, the Minister of State pointed out, healthcare contributions will no longer be payable on dividend income and capital gains. This measure is expected to leave HUF 3bn more at families.

Thanks to the higher limit for VAT exempt status – HUF 8 million instead of the current HUF 6 million – even more enterprises may opt for this tax scheme, which means that taxpayers do not have to charge and pay VAT to the budget, and they do not have to separately declare VAT to the tax authority, he stated.

(Ministry for National Economy)