The government will take an unprecedented step next year ! Millions of individuals and at least 700,000 businesses will be affected by next year's tax reduction measures, and the government will leave HUF 1,500 billion in the economy.
The measures also include a step of historic significance, the deputy minister of finance told the Mediaworks News Center. András Tállai added: parents raising children still have work to do this year if they want to receive their tax refund quickly at the beginning of next year.
One thousand five hundred billion forints - according to the government's plans, public burdens will be reduced by this amount next year. - Young people, families, employees and businesses will also be able to feel the positive effects of the tax cut, the Deputy Minister of Finance told the Mediaworks News Center when asked to explain in detail what the huge sum is made of.
State Secretary András Tállai started by saying that the largest item is the SJA refund. The parents raising the children will receive six hundred billion forints back together, and most of them will receive the amount they are entitled to by mid-February.
The measure is historic and at the same time crucial. On the one hand, the Hungarian government has never provided for such a significant one-off refund, and on the other hand, the disbursement can help families to ensure that the country leaves behind the fourth wave of the coronavirus epidemic, in a financial sense, said the deputy minister of finance.
Source: Hungarian Nation/illustration
András Tállai noted here: those who do not have all the data available should fill out the simple form required for the refund as soon as possible, which is easily available on the website of the tax office. Those concerned can do so so that, if the conditions allow, the treasury can pay the refund due to them by mid-February.
The state secretary continued with the tax cuts that will come into effect on January 1st.
People under 25 are exempt from personal income tax up to the average salary. We are essentially abolishing the sja for them - said András Tállai, then mentioned that the move means a total of HUF 140 billion for more than a quarter of a million young people.
At the same time, a significant reduction in corporate tax also comes into effect.
The rate of the social contribution tax will be reduced by 2.5 percentage points, while the vocational training contribution of one and a half percent will be abolished. Together, this corresponds to a tax reduction of six hundred billion, explained the deputy minister, and then noted that these changes do not only benefit employers.
Next year - with a twenty percent jump - the minimum wage will increase to two hundred thousand forints. This is a change that will increase the salaries of many hundreds of thousands of employees. Companies can more easily manage wage increases with the help of tax cuts, that is, reducing the public burden is one of the important supporting factors for increasing salaries, explained the state secretary.
In the following year, the expatriates will also receive a material tax reduction. The reduction of the small business tax rate to ten percent will result in HUF ten billion tax relief. The fact that the government extends the discount for small and medium-sized enterprises in the local business tax means a much larger saving of 150 billion for those involved.
Small businesses will pay a maximum tax of one percent next year as well, and the government will not allow this, stated the state secretary, mentioning that there is no left-wing effort to raise taxes, which in such a situation as the current one can divert the government from reducing taxes for smaller companies.
Source: magyarnemzet.hu
Featured image: infostrart.hu
