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Tax News - Local Business Tax


As of 1 January 2023 small entrepreneurs – which means those entrepreneurs whose annual net turnover does not exceed HUF 25 million (or its proportionate amount for the fraction of the tax year) – will have the option to the simplified assessment of their local business tax base. Up to HUF 12 million of yearly net turnover the so determined simplified local business tax base will be HUF 2,5 million per municipality; between HUF 12 million and HUF 18 million it will be HUF 6 million; and between HUF 18 million and HUF 25 million it will be HUF 8,5 million per municipality. The simplified assessment of local business tax rate may be chosen by declaration in the local business tax return for the previous tax year, until the filing deadline (31 May).  Declarations are not required to be renewed every year. Should the net turnover exceed HUF 25 million mid-year, the local business tax base are to be assessed based on the normal rules.


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