Hungary Planning Tax Cuts on Payroll

Hungarian Finance Minister Mihály Varga reportedly announced on 11 May 2021 the government's plans to provide tax cuts on payroll by eliminating the existing vocational training contribution and providing a further reduction in the social security contribution (social tax) to 15.0%, which would apply from July 2022. The vocational training contribution is currently 1.5% and the social tax is 15.5% (i.e., a combined reduction of 2.0% will be provided). Both taxes are paid by employers on gross…