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