SMEs can save tens of billions of forints annually by reducing employment administration, which the Ministry of Finance is currently working on - informed Norbert Izer. In addition to reducing administrative burdens, the significant simplification of employer data provision can also become an exemplary model at the international level, believes the State Secretary of the Ministry of Finance responsible for tax affairs.

Businesses spend 1.7 percent of their annual income on tax administration, a significant part of which, about a quarter, can be linked to employment. According to a survey conducted in 2019, HUF 90 billion is the annual amount spent on employer returns and data services. By simplifying data provision, this can be significantly reduced, explained Norbert Izer.

In addition to the declarations, businesses can expect to provide about twenty types of data, which they have to provide to various organizations in addition to the tax office, such as the Central Statistical Office, the Hungarian State Treasury or the National Health Insurance Fund Manager.

The transformation of the form-based system based on multiple data requests is also necessary because the planned data provision system, which is available online and via direct digital connection, not only brings cost reductions to SMEs, but also increases the country's competitiveness.

The goal is not for businesses to administer for the authorities, but instead for the state to prepare the necessary returns and data services from the data received through one channel.

ACCORDING TO THE PLANS, THE NEW SYSTEM CAN ALSO DETERMINE THE TAX AND CONTRIBUTIONS TO BE PAID , explained the state secretary.

Hungary has received many accolades in the field of taxation in the recent period. Since 2018, it has won the title of the biggest tax reducer in the European Union several times. The government's tax policy is also paying off, as Hungary has been among the ten best investment destinations in the world for years," Norbert Izer reminded.

The reduction of administrative burdens will make it easier for Hungarian businesses, and it can also attract more investors to our country, he added.

Source: Origo/MTI

Photo: Tamás Kovács