Hungary

Hungary's Rankings
CategoryRankScore
Overall Rank1468.58
Corporate Taxes479.84
Individual Taxes879.44
Consumption Taxes3546.98
Property Taxes2554.44
International Tax Rules298.57

Hungary ranks 14th overall on the 2019 International Tax Competitiveness Index, one spot worse than in 2018.


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 estate, asset, and financial transaction taxes.

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