The National Tax Strategy, currently being elaborated by the Ministry for National Economy, aims to reduce the time required of enterprises to devote to taxation issues, Minister Mihály Varga said at a conference organized by Deloitte Hungary.

The recently concluded wage hike agreement is expected to add impetus to the economy as of 2017. Under the deal, payroll taxes are set to be reduced by potentially 7.5 percent over the next two years and the corporate income tax rate will also be cut to a single-digit figure.

The number of hours spent in Hungary on taxation-related work is extremely high when compared to international statistics. As tax regimes play a major role concerning economic growth and the improvement of competitiveness, the Ministry has decided to make a National Tax Strategy, Mihály Varga said. It is high time, he added, to eliminate minor taxes and multiple, same-purpose levies on tax bases.

Tax declaration forms are being reviewed and simplified, and wherever it is possible, the National Tax and Customs Administration (NAV) is to issue tax returns, he pointed out. Next year, the NAV may issue the tax returns of private persons who are only obliged to declare personal income tax, while as of 2018 the authority may also issue draft declaration forms on excise taxes.

Some measures effective as of next year will leave more money at enterprises and substantially reduce bureaucracy.

The Government will also support medium-sized, fast-growth enterprises and startups. Through tax breaks for companies that invest in startups, these enterprises may receive capital of HUF 40-60bn, the Minister stressed.

(Ministry for National Economy)