Hungary: Living There

Hungary: Living There

Residents are taxed based on normal progressive rates on their worldwide income with tax credits available. INCOME TAX   TAXABLE INCOME , HUF (€*) RATE Up to 1,700,000 (€6,838) 18% 1,700,000 – 6,748,850 (€27,145) 36% on band over €6,838 Over 6,748,850 (€27,145) 40% on band over €27,145 * Exchange rate as of 22 May 2007: 1 EUR = 248.621 HUF There are many allowances available: TAX ALLOWANCE   TYPE OF TAX CREDIT TAX CREDIT, HUF (€) Employment Credit 18%, up to a maximum of HUF108,000 (€434), if total annual taxable income does not exceed HUF1,500,000 (€6,033); for income between HUF1,500,000 and HUF2,100,000 (€7,868), the tax credit calculated should be reduced by 18%. Family Credit HUF4,000 (€16) per child every month Disability Credit Disabled persons are given a monthly credit equivalent to 5% of the minimum wage or HUF3,275 (€13) per month. Education Allowance 30% of tuition fees for first degree of higher education up to a maximum of HUF60,000 (€241) per year.       * Total tax credit claimed may not exceed the tax payable. Tax credits are not refundable.

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