Hungarian businesses have long been suffering from a multitude of administrative requirements. Many of these are connected to taxation and are caused, at least to some extent, by the sheer number of taxes that Hungarian businesses (and individuals) must face. In order to see more clearly, Jalsovszky Law Firm had tried the impossible: to make a list of all of Hungary’s taxes and their key features. The list includes 61 taxes and they offer plenty of observations. We share some of them below.
In order to make such a list, one must first ask the seemingly obvious question: what is a tax? Are all payment obligations taxes? We think not.
Firstly, there are payment obligations which entitle the payer to a service or other benefits – these are not taxes. So, a procedural fee is not a tax. Nor are road tolls and the like. Likewise, classic social security contributions are not taxes because they are usually capped. In theory, you pay only as much as you receive in return (it turns out, however, that Hungary does not really have any of those anymore). Finally, fines, penalties and other sanctions also cannot be considered taxes (even though taxpayers may often perceive every kind of tax as a penalty).