Editing Economy of Hungary (section)

=== Tax system ===
{{main|Taxation in Hungary}}
In Hungary, the 1988 reform of taxes introduced a comprehensive tax system which mainly consists of central and local taxes, including a [[Income tax|personal income tax]], a [[corporate income tax]] and a [[value added tax]].<ref name="9331reflection_on_the_hu">{{cite web|url=http://www.upm.ro/facultati_departamente/ea/RePEc/rcj09/recjurid093_3F.pdf |archive-url=https://web.archive.org/web/20111005011837/http://www.upm.ro/facultati_departamente/ea/RePEc/rcj09/recjurid093_3F.pdf |url-status=dead |archive-date=5 October 2011 |title=Reflection on the Hungarian Tax System and Reform Steps |author=Mihály Hőgye |access-date=18 January 2010}}</ref> Among the total tax income the ratio of local taxes is solely 5% while the EU average is 30%.<ref name="1882ad_z_s__taxation_">{{cite web|url=http://www.euvonal.hu/index.php?op=gazdasag&id=35 |title=Adózás (Taxation) |language=hu |access-date=18 January 2010 |url-status=dead |archive-url=https://web.archive.org/web/20100922131306/http://euvonal.hu/index.php?op=gazdasag&id=35 |archive-date=22 September 2010}}</ref> Until 2010, the taxation of an individual was progressive, determining the tax rate based on the individual's income: with earning up to 1,900,000 forints a year, the tax was 18%, the tax on incomes above this limit was 36% since 1 July 2009.<ref name="2956short_summary_on_the">{{cite web |url=http://en.apeh.hu/taxation/summary_individuals.html |title=Short summary on the taxation of individuals |date=1 July 2009 |publisher=Tax and Financial Control Administration |access-date=18 January 2010 |url-status=dead |archive-url=https://web.archive.org/web/20100106121048/http://en.apeh.hu/taxation/summary_individuals.html |archive-date=6 January 2010}}</ref>

Based on the new one-rate tax regime introduced January 2011, the overall tax rate for all income-earnings bands has been 16%. According to the income-tax returns of 2008, 14,6% of taxpayers was charged for 64,5% of the total tax burdens.<ref name="2758az_ad_z_k____sz_zl_k">{{cite web |url=http://adougyek.hu/tart/cikk/ca/0/53307/1/adougyek/APEH_az_hogy_kevesen_fizetnek_sok_adot_nem_magyar_sajatossag |title=Az adózók 24 százléka vall minimálbért (24% of Taxpayers Claim They're on Minimum Wage) |date=2 September 2009 |publisher=Hungarian News Agency Corp. |language=hu |access-date=18 January 2010}}</ref> Before the new corporate income tax regime, the corporate tax was fixed at 16% of the positive rateable value, with an additional tax called solidarity tax of 4%, the measure of which is calculated based on the result before tax of the company (the solidarity tax has been in use since September, 2006). The actual rateable value might be different is the two cases. From January 2011, under the new corporate income tax regime the tax rate was divided into two parts (i) corporations having income before tax below 500 million HUF (appr. USD 2.5 million) was lowered to 10% and (ii) 16% remained for all other companies until 2013. After this, the unified corporate income tax rate will be 10%, irrespectively from the size of the net income before tax. In January 2017, corporate tax was unified at a rate of 9% – the lowest in the European Union. The rate of value added tax in Hungary is 27%, the highest in Europe, since 1 January 2012.<ref name="7391_______vi_cxxvii__t_">{{cite web|url=http://www.deloittetax.at/2012/01/18/hungary-corporate-income-tax-and-vat-changes-2012/ |title=Deloitte Tax News » Hungary: Corporate Income Tax and VAT changes 2012 |publisher=Deloittetax.at |date=1 January 2012 |access-date=2 April 2012}}</ref>