Hungary has been a member of the EU since 1.5.2004. In the course of accession, the tax system was adapted to the EU requirements. Corporations and certain other companies are subject to corporation tax. This follows the classic system. At the corporate level, the tax rate is 16 %. A proportional dividend tax is applied at the shareholder level.
Individuals are subject to income tax. The tax rate is between 18 % and 38 %. A wealth tax is not levied. There is an inheritance and Property tax as well as various excise duties. the value added tax follows the EU system. The standard rate is 25 %, the reduced rates 15 % and 5 %. There are around 60 DTAs that largely follow the OECD-MA.
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