All taxpayers registered for Small Business Tax (KATA) are eligible for simplified Local Business Tax payment by law. By choosing this opportunity the base of the tax will be 2.5 million HUF per local municipality.
The maximum taxrate is 2% by law, but the municipalities can choose a lower rate to attract investors and companies. This means that the yearly tax for a small business, who have only one business seat is
50 000 Ft yearly.
The taxpayer have to pay the tax every year in two same parts at
15th of March and at 15th of September.
There isn’t anything else to do regarding local business tax payment for the taxpayer including statuory reporting or any kind of official calculation or declaration.
The taxpayer have to prepare a tax declaration until 1st of January regarding local business tax only if
- the taxpayer’s tax status was inactive, so the tax amount will be less than the full year amount
- he/she is eligable for anykind of taxexemtion rule at the local municipality.
This decision is valid for the whole business year. The taxpayer is allowed to change the