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Income tax in 2012 - Hungary

Modifed income tax regulations applicable in 2012 with super gross rule and 2 flat rates.

10 November 2011

IFA logoSuper gross rule was introdued in 2010. It means there is a specail rate which income(taxable base) is mulitplied with. That is why called super gross. The special rate makes income/taxable base super gross (artificial) to provide higher tax revenues in Hungary. It is actually part of the political communication where single flat rate system desired but double flat rates launched:


- super gross rate = 27%

- super gross rule = taxable base x 1.27

- income tax = (taxable base x 1.27) x income tax rate


16 % single flat rate below annual income of HUF2,420,000 and super gross rule (double flat rates) applicable in the income band above.

Real single rate of 16% of income tax rate will be available from beginning of 2012 in Hungary. Single tax rate used below income of HUF2.420.000:


- 16% of flat rate below annual income of HUF2,420,000

- income tax = taxable base x 16%


Over HUF2,420,000, super gross rule with income tax rate remains unchanged:


- super gross rate = 27%

- income tax rate = 16%

- super gross rule = taxable base x 1.27

- income tax = (taxable base x 1.27) x 16%

Thanks to super gross rule, income tax rate also refers to 20.32% = 16% x 1.27 in the band above HUF2,420,000