Hungarian Government Announces Measures to Further Reduce Taxes on Labor

On 13 November 2021, the Hungarian Government issued a release announcing measures meant to further reduce taxes on labor, with the savings intended to be spent on wage increases. The measures include:

• A reduction in the social contribution tax rate by 2.5%;
• The elimination of the 1.5% vocational training contribution;
• A reduction in the small business tax (KIVA) rate to 10%; and
• An extension of the relief providing a reduced local business tax rate of 1% for SMEs (the 1% rate is the maximu…