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Accounting FAQ

  • What type of taxes do I have to pay?

You have to pay the corporation tax (9%) in advance until the 20th of the month following the quarter, the local business tax (0-2%, subject to the location) and the chamber contribution, which is EUR 16 yearly.

  • What is the corporate  tax?

The corporate  tax is a type of the income and profit taxes which has to be paid by  every foreign entrepreneurs who form a company in Hungary. Since 2017 its rate is 9% which is the lowest in Europe.

  • When do I have to pay the corporation tax?

Until the 20th of the month following the quarter in advance.

  • What is the local business tax?

The local business tax is a tax levied by the self-government, which rate depends on the registered address of the company (in Budapest its rate is 2%).

  • When do I have to pay the local business tax?

You have to pay the first part until the 15th March in advance, and then the rest until 15th September.

  • What is the chamber contribution fee?

Every registered Hungarian company  has  to pay the chamber contribution fee for the Budapest Chamber of Commerce and Industry every year (the amount in each case is EUR 16).

  • When do I have to pay the chamber contribution fee?

Until 31st March, by bank transfer.

  • Do I have to pay VAT?

Simultaneously with the company registration, we will obtain you an EU VAT number free of charge. If you are doing business in Europe with a client who also has an EU VAT number, then you have to pay VAT (its rate is 27%) when you raise your invoice, but later you can reclaim it. If you are doing business in Europe with a client who does not have an EU VAT number, you cannot reclaim it. If you are doing business outside of Europe you do not have to pay VAT.

  • Do I have to pay social security contribution?

If you have a social security insurance in another country and you do not stay more than 183 days in Hungary, you can declare this fact on Form E101, and in that case there is no social security payment obligation.

  • What are the minimum wages for employees in Hungary?

The minimum wages for skilled employees are EUR 555/month, and for unskilled employees EUR 425/month.

  • In which cases I am obliged to audit?

The audit is a mandatory in Hungary, if the number of the employees is  more than 50 members, or your yearly income exceeds EUR 1.000.000.

  • What do I have to do if I assign you with accounting?

If you honour us with your confidence, you only have to send us your invoices and your bank account statements monthly, and our qualified and well-experienced accountants will carry out all the necessary further measures, who  are at your disposal in accordance with the Hungarian taxation and financial regulations.

  • Is the base fee of the accounting changes depending on the number of the invoices issued by the company or any other reasons?

The base fee (EUR 150/month) contains 80 accounting entries, above that it is 50 cent/entry.

  • How can I issue an invoice?

There are numerous user-friendly, Hungarian websites for issuing an invoice, which are easy to use and can be reached in English language. Of course if you have any problem with issuing an invoice, our accountants are at your disposal any time.