Accounting FAQ

Accounting and Taxation in Hungary

What type of taxes do I have to pay?

In every cases you have to pay the corporate tax (9%), the local government tax (0-2%, subject to the registered address) and the chamber contribution fee which is 5000 HUF (approximately 15 EUR) yearly. Other taxes may apply depending on the business activities which you perform.

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 entrepreneur  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 corporate tax?

The tax advances have to be paid until the 20th of the month following the quarter. At the yearly closing at 31st of May the remaining amount has to be paid if the tax advances don’ t settle totally your tax liabilities.

What is the local government tax?

The local governement  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?

The first part of the tax advance has to be paid until the 15th of March, the second part of the tax advance is payable until 15th of September. Like in case of the corporate tax, if the tax advances don’t settle totally the amount of the payable tax, the remaining has to be paid until 31st of May.

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 5000 HUF, which is approximately 15 EUR).

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 can obtain an EU VAT for your company if you require it (our incorporation fee contains this as well). If you will be doing business with other EU companies which have this EU VAT number as well, the rate of the VAT will be 0%. In case you are providing your services to other companies which are registered outside of the EU the transaction shall be VAT-free (except for offshore companies which don’t have a tax number). The VAT is only payable if you are doing business with private persons, Hungarian companies or with those EU companies which don’t have an EU VAT number.

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 current gross amount of the minimum wage is 167.400 HUF/month (approximately 465 EUR), the minimum guaranteed salary (it has to be paid if the performance of the work requires at least secondary education) is 219.000 HUF/month (approximately 610 EUR) currently.

In which cases I am obliged to audit?

The audit is a compulsory if the company’ s average net yearly income exceeds 300.000.000 HUF (approximately 840.000 EUR) in the past two business years, or the average number of its employees are more than 50 members in the past two business years.

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

If you honor 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 basic fee (150 EUR + VAT/month) contains 80 accounting entries (on top of it 50 cent + VAT/entry) and the payroll management of one employee (every additional employee costs 15 EUR + VAT) per month.

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.