Almost everyone will be affected by the tax cuts in 2022, in total more than HUF 1,500 billion will remain for families, young people, small and medium-sized businesses, cryptocurrency traders, and also for a significant majority of workers due to the reduction of employer tax and the increase of the minimum wage - informed Norbert Izer, the state secretary responsible for tax affairs.
This is the first time that a family tax refund is made. with this, parents raising children and those who are entitled to a family discount will receive a total of more than HUF 600 billion in tax paid back.
Another first – and unique – step is the introduction of tax exemption for young people under the age of 25. which leaves a total of HUF 140 billion for about a quarter of a million young people. As of January 1, 2022, those affected will be exempt from paying the 15 percent personal income tax up to the amount of their average earnings.
The third favorable change affecting the population affects cryptocurrency traders, said Norbert Izer. The favorable rules regarding cryptocurrencies can already be applied in the income tax return to be submitted this year. The tax rate will be halved, to 15 percent , thus cleaning up the domestic crypto market and further whitening the economy, which can bring considerable income to the budget.
Regarding the tax changes affecting businesses, the state secretary said that the public burden of work will decrease by four percentage points. While in 2009, 33.5 percent of taxes were imposed on businesses, from January 1, 2022, it will be less than half: only 13 percent. This year, the vocational training contribution of one and a half percent will be abolished, and in addition, the social contribution tax payable by businesses will be reduced by two and a half percentage points.
The rate of the small business tax (kiva) is reduced to 10 percent. The tax reduction means HUF 10 billion for businesses that are already exporting, but it can already be seen that this amount will be higher, as due to the favorable rules, by December 31, almost nine thousand newly registered companies have already indicated their switch to the export.
The discount for small and medium-sized enterprises in the local business tax is also valid this year, which means that in 2022, the lower tax rate of a maximum of one percent will automatically apply to those concerned in most cases. Through the measure, SMEs can save a total of HUF 150 billion.
Businesses, families and the population are also protected this year by the rule according to which local tax decrees or settlement tax decrees that would raise tax rates or reduce tax benefits cannot be applied, and in 2022 local governments will not have the opportunity to introduce new local for the introduction of tax or municipal tax.
According to Norbert Izer, the big winners of 2022 are micro-enterprises. The flat-rate tax is being completely renewed, which should be considered not only for the smallest businesses, but also for those working as sole proprietors with many employment relationships. The income of a flat-rate taxpayer is tax-free up to half of the annual minimum wage, which, calculated at a 40 percent cost rate, means that flat-rate taxpayers do not have to pay personal income tax up to two million HUF.
Source: MTI
(Cover image: kormany.hu)
