Hungary’s tax system affecting corporations will be the most competitive among the Visegrad Four countries as a result of planned changes, Prime Minister Ferenc Gyurcsany said on Friday.
The corporation tax will remain the lowest in the region while social security contributions payable by companies after their employees will be below the current level in the Czech Republic and Slovakia, Gyurcsany told a meeting of the association of international companies in Hungary.
The combined level of corporation tax, social security and personal income tax, the three most important taxes affecting companies, will be the most competitive in Hungary when compared to the Czech Republic, Poland and Slovakia, he added.
The government plans an agreement with retail chains to ensure that their products are of at least 80 percent Hungarian origin, Gyurcsany said.
State spending is planned to be cut by 1-2 percent of gross domestic product by the year 2011 and 90 percent of employees will pay tax under the lowest personal income tax bracket, Gyurcsany said.
tee-hee-hee-hee
How is this possible? SK has a flat tax of 19%, no 8000 EUR jump to 36 or 38; and it caps its social costs (so that at most, its 3 times the minimum wage). Though a little out of date consider this link:
http://www.sario.sk/swift_data/source/dokumenty/Taxes2007.pdf
In this example for 2007/8, with albeit a high salary of 100K EUR, in SK the corporate employee costs 106, and walks away with 79. In HU, that same guy cost 133 and walks away with 53…
Even if HU’s social costs go down by 6% how the heck is this going to be competitive?
Further, the corporate is tax equalized – so let’s say he’s a Slovak working in HU, his company will have to pay him perhaps 200K so that he walks away with the same amount of money…
The man’s diluded or stupid or both!
Will someone PLUEEEESE get the country rid of that nut case jerk-off Gyurcsany!? Heck, he is so crazed, a third-rate Slovakian asylum would not take him. For a janitor, that is.