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Hungarian business groups propose KATA and wealth tax reforms
Business organizations in Hungary are submitting formal proposals to the Ministry of Finance regarding proposed reforms to the KATA (small business tax) and the new wealth tax.
The Hungarian Chamber of Commerce and Industry (MKIK) argues that if small businesses are required to pay higher supplementary taxes, these payments should directly increase their social security base for pensions and health insurance. MKIK also proposed a 'social KATA' model to support low-income self-employed individuals, such as caregivers or those in small settlements, with an annual income cap of 6 million HUF. Additionally, the Chamber recommends exempting productive business assets from the upcoming wealth tax.
Separately, the National Association of Hungarian Accountants (MKOE) has criticized the Ministry's current draft as overly complex and contradictory. MKOE has submitted an alternative regulatory framework aimed at simplifying the system through automation. Their proposal suggests that the National Tax and Customs Administration (NAV) should use existing digital invoice data to determine taxes, thereby eliminating the need for separate annual KATA tax returns.
Entities
Hungarian Chamber of Commerce and Industry · Ministry of Finance · National Association of Hungarian Accountants · National Tax and Customs Administration
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] MKIK recommends exempting productive business assets from the proposed new wealth tax to avoid draining operational resources. novekedes.hu
- [○ 1 SOURCE] The National Association of Hungarian Accountants (MKOE) argues that the Ministry of Finance's KATA draft is overly complex and inconsistent with existing tax reduction programs. mmonline.hu
- [○ 1 SOURCE] MKOE proposes that the National Tax and Customs Administration (NAV) should determine small taxpayer income and taxes using existing online invoice and database information to eliminate separate tax申报 mmonline.hu
- [● 2 SOURCES] MKIK has proposed a 'social KATA' tax model for low-income self-employed individuals, such as caregivers or those in small settlements, with an annual income limit of up to 6 million HUF. mfor.hu · novekedes.hu
- [● 2 SOURCES] The Hungarian Chamber of Commerce and Industry (MKIK) proposes that supplementary taxes paid by small taxpayers should increase their social security base for pensions and health benefits. mfor.hu · novekedes.hu