#

Ease of Doing Business in

Hungary

Hungary Download Profile (1762.7KB, pdf)
Region OECD high income
Income Category High income
Population 9,844,686
GNI Per Capita (US$) 12,990
City covered Budapest

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
.
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 41 40 down
1
73.07 72.74 down
0.33
Starting a Business 75 71 down
4
87.28 87.10 up
0.18
Dealing with Construction Permits 69 66 down
3
71.70 71.69 up
0.01
Getting Electricity 121 118 down
3
60.13 60.11 up
0.02
Registering Property 28 28
-
80.08 80.20 down
0.12
Getting Credit 20 19 down
1
75.00 75.00
-
Protecting Minority Investors 81 78 down
3
55.00 55.00
-
Paying Taxes 77 79 up
2
74.46 73.74 up
0.72
Trading across Borders 1 1
-
100.00 100.00
-
Enforcing Contracts 8 13 up
5
75.79 73.94 up
1.85
Resolving Insolvency 63 63
-
51.25 50.58 up
0.67

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank: 77

DB 2016 Rank: 79

Change in Rank: up2

DB 2017 DTF (% points): 74.46

DB 2016 DTF (% points): 73.74

Change in DTF (% points): up0.72

Indicator Hungary OECD high income
Payments (number per year) info_outline 11.0 10.9
Time (hours per year) info_outline 277.0 163.4
Total tax rate (% of profit) info_outline 46.5 40.9
Postfiling index (0-100) info_outline 75.8 85.1
Tax or mandatory contribution Payments (number) Notes on Payments Time (hours) Statutory tax rate Tax base Total tax rate (% of profit) Notes on TTR
Local business tax 1 online 2% adjusted net revenue 5.89
Corporate income tax 1 online 35 10-19% taxable profit 4.00
Social tax 1 online 146 27% gross salaries 30.46
Rehabilitation contribution 1 online HUF 964,500 5% of the employees 1.83
Training contribution 0 jointly 1.5% gross salaries 1.69
Property tax 1 online HUF 1,796 per square meter building area 1.06
Innovation contribution 1 online 0.3% adjusted net revenue 0.88
Fringe benefit tax 0 jointly 16% plus (14% or 27% of 1.19 times value) fringe benefit 0.37
Land tax 1 online HUF 323 per square meter land area 0.23
Vehicle tax 1 online HUF 850 per 100kg vehicle weight plus half load 0.11
Environmental tax 1 online fixed fee depends on nature and type of pollution 0.00 small amount
Employee paid - Social security contributions 0 jointly 18.5% gross salaries 0.00 withheld
Fuel tax 1 included into the fuel price 0.00 small amount
Value added tax (VAT) 1 online 96 27% value added 0.00 not included
Totals: 11.0 277.0 46.5
  • Taxes by type Answer
    Profit tax (% of profit) 9.9
    Labor tax and contributions (% of profit) 34.3
    Other taxes (% of profit) 2.3
    Answer Score
    Postfiling index (0-100) 75.8
    VAT refunds
    Does VAT/GST exist? Yes
    Frequency of VAT/GST refund submission monthly
    Does a VAT/GST refund process exist per the case study? Yes
    Restrictions on VAT refund process None
    Likelihood of VAT audit Likely
    Time to comply with VAT refund (hours) 15.0 70.0
    Time to obtain a VAT refund (weeks) 13.7 79.7
    Corporate income tax audits
    Does corporate income tax exist? Yes
    Likelihood of corporate income tax audit Likely
    Time to comply with a corporate income tax audit (hours) 12.0 80.7
    Time to complete a corporate income tax audit (weeks) 8.7 72.8
    Administrative appeal process
    First level administrative appeal authority Tax Authority
    Is the appeal authority independent? Independent Department within tax office
    Are appeal guidelines accessible to the public? Yes
    Source of appeal guidelines online
    Is there a legal time limit for the appeal authority to issue a decision on the tax appeal? Yes
    Legal time limit 60 days

Notes:

Name of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table.

The hours for VAT include all the VAT and sales taxes applicable.

The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.

The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit.

N/A = Not applicable.