Taxation changes can save up to more than HUF 270bn for companies and private individuals have already saved another HUF 270bn from their income taxes last year compared to 2010, numbers revealed by the National Tax and Customs Authority (NAV) on Tuesday show. The extension of a 10pc corporate tax rate and tax preferences is saving Hungarian companies more than HUF 270bn on last year’s taxes, NAV deputy chief Arpad Varga said at a press conference on Tuesday.
Corporate tax revenue actually fell only to HUF 316.6bn in 2011 from HUF 323.3bn in the previous year because of the tax changes, Mr Varga said.
The calculation omits tax refunds due over a longer period of time.
Companies paid an average 9.4pc of their earnings in tax last year, down from 12.9pc in 2010, Mr Varga added.
Net revenue of Hungarian companies – 398,000 at the end of 2011 – was a combined HUF 71,372bn in 2011, up 6.5pc from the previous year. Export revenue climbed 14.9pc to HUF 21,822bn.
The number of profitable companies edged up 1.8pc to 212,369. Profits climbed 17pc to HUF 5,513bn.
The number of loss-making companies rose 0.5pc to 161,459, and their losses jumped 42.3pc to HUF 3,166bn.
Taxation changes in Hungary reduced the amount of personal income tax collected by the National Tax and Customs Authority (NAV) by HUF 270.1bn to HUF 1,194.2bn in 2011 from a year earlier, Mr Varga said.
The average Hungarian paid 13.7pc of their earnings in personal income tax last year, down 2.5 percentage points from 2010, Mr Varga said.
Hungary introduced a 16pc flat-rate personal income tax and expanded family tax preferences last year.
More than 1,017,000 Hungarians, or 23.7pc of all personal income tax payers, availed of the family preferences last year, reducing their combined tax base by HUF 1,126.2bn. The flat rate translated as a HUF 180.2bn preference for this group.
At the same time, the number of private individuals ineligible for any tax preference rose to 763,000 from 532,000.
The number of Hungarians required to pay personal income tax fell by 147,000 to 3,343,000.