International recognition of the Hungarian tax system

Hungary’s tax system has received further international recognition, with Hungary climbing to seventh place in EY’s tax competitiveness ranking, Hungarian Finance Minister Mihály Varga announced on his Facebook page on Thursday.

The minister said that Hungary has also overtaken countries like Germany, Austria and the United States of America in the ranking of the international tax council. In their report, they pointed out that Hungary has the lowest corporate tax rate among Organization for Economic Co-operation and Development (OECD) countries, and that the flat personal income tax 15% was also considered an asset, the Minister added.

Mihály Varga pointed out that this is the second recognition of the Hungarian tax system this month.

Last week, Eurostat announced that Hungary was ranked first in the EU’s tax reduction ranking.

Hungary has improved its tax burden to 34% of GDP in 2021, compared to an EU average of 42%.

The government has cut employers’ taxes by 600 billion HUF (1.4 billion euros) this year and will further reduce tax administration next year, which could further improve Hungary’s competitiveness and boost flows investment to Hungary, Varga wrote on his social media page.

Featured photo via Pexels

Laura T. Thrasher