The Hungarian Chamber of Commerce and Industry (MKIK) proposed new tax relief measures at a strategic meeting held at the end of August, aiming to ease the burden on small and medium-sized enterprises (SMEs).
The plan would gradually raise the VAT exemption threshold from HUF 20 million to 24 million over the next three years, increase the flat-rate tax cost deduction from 40% to 50% while removing the 112.5% multiplier on social contribution tax, and expand the Small Business Tax (KIVA).
Currently, companies can enter KIVA with up to 50 employees and HUF 3 billion turnover, and remain in the scheme up to 100 employees and HUF 6 billion. Under the new proposal, the limits would double. For growth-oriented businesses, this expansion could bring a meaningful tax relief. MKIK estimates that 3,000–5,000 companies and around 150,000 employees could benefit overall, making taxation simpler and more favorable for SMEs.
By Rozsa Rusvai-Darazs, Attorney at law, KCG Partners Law Firm
