Published at: 06/03/2014 01:38 pm
Except some exemptions provided by law, all types of incomes of private individuals are subject to income tax. In the case of private individuals, the Hungarian Personal Income Tax Act (PIT) separates the following categories of income:
In Hungary the personal income tax is flat-tax, the rate of it is 16%, since 2011.
Income derived from non-independent activity can be salary from employment, income from activity of acting as leader of an economic organisation, and activities of the private individual who is an owner of a company.
Income from activities other than self-employment includes salary and remuneration received by private individuals in payment for such activities, and income paid as personal participation and for activities as senior officers and elected office-holders.
As rule, these costs cannot be deducted from the tax base.
As a main rule, outside the framework of one-man businesses, income from independent professional activity shall be calculated as the difference of all revenues and expenditures. Private individuals with an independent professional activity including primary agricultural producers, lessors of property, appointed auditors as well as members of the European Parliament, the Parliament and of local authorities.The taxpayer can choose between the two options of cost accounting: