SIMPLE TAX VARIETIES IN HUNGARY

Abstract

KATA taxation has become popular with both sole proprietors and micro businesses in recent years. The taxation method could be first chosen in 2013. In this year 28,316 million HUF tax revenue was related to this method at national level, which increased by nearly four times by 2017 to 4,188 million HUF.EKHO offers a reduced rate of tax and contribution on wage income. The method of taxation can only be chosen by those who work in specific fields. At the time of its introduction, beneficiaries were typically writers, artists, and others worked in the fields of different arts. However, since the middle of the year 2010, beneficiaries can be employed in sports sector as well. In addition, in this field, the value limit is higher and further discounts are available. The most important benefit is that in the case of professional athletes, the employer is not liable to pay taxes and contributions. The accounts of sports organizations reflect the reduced contribution burden. The disadvantage of the system is that it distorts market-based operation in the sports sector. However, favorable tax systems have disadvantages, as their use will mean lower social security benefits in the future. To sum up, the data clearly show that many people chose from the preferential tax opportunities. The long-term impact, i.e. the lower pension does not discourage the people concerned yet.