Hungary
Category | Rank | Score |
---|---|---|
Overall Rank | 13 | 69.02 |
Corporate Taxes | 6 | 75.42 |
Individual Taxes | 9 | 74.93 |
Consumption Taxes | 36 | 43.07 |
Property Taxes | 17 | 62.73 |
Crossborder Taxes | 4 | 97.4 |
Hungary ranks 13th overall on the 2021 International Tax Competitiveness Index, the same as in 2020.
Strengths
- Hungary has the lowest corporate tax rate in the OECD, at 9 percent.
- Hungary has a flat personal income tax system.
- Controlled Foreign Corporation rules are better-than-average.
Weaknesses
- Companies are severely limited in the amount of net operating losses they can use to offset future profits, and companies cannot use losses to reduce past taxable income.
- Hungary has the highest VAT rate among OECD countries, at 27 percent.
- Hungary levies taxes on estates, real estate transfers, and bank assets.
Learn more about the tax system in Hungary