Tax rate
From 2013, a uniform tax of 15% tax has been payable on income types forming part of the consolidated tax base and taxable in Hungary (e.g. salary, engagement fee etc.) and on capital incomes as well.
Children deduction
There is a family tax allowance, which amounts to HUF 10,000 per child per month per family for one child, HUF 20,000 per child per month per family for two children and HUF 33,000 per month per child for three or more children. The family tax allowance is also available to employees seconded from abroad, subject to a few restrictions.
Tax payment
In Hungary, the tax advance is withheld by the payer (the employer) and the employer transfers the income tax to the tax authority’s account. The tax return on withheld advance payments must be filed by the employer by the 12th day of the month following the relevant month. Private individuals must file their own tax return by 20 May of the year following the relevant year. That is when the difference between the actually payable tax amount and the withheld advance payments can be settled.