Lawmakers on Friday approved tax changes earlier announced as part of expanded support for families and a package of tax cuts and growth incentives.
The legislation makes mothers of four or more children exempt from personal income tax for life.
It eliminates the Simplified Business Tax (EVA) from the start of next year, while at the same time lowering the Small Business Tax (KIVA) rate from 13 percent to 12 percent. The KIVA rate is above the 9 percent corporate tax rate, but KIVA companies enjoy a number of exemptions.
The legislation extends the opportunity to pay the Simplified Contribution to Public Revenues (EKHO) to the employees of foreign sport organisations as well as Hungarian ones. Additionally, it makes allowances paid in the framework of sport diplomacy tax-exempt.
The law reduces the VAT rate for commercial accommodations from 18 percent to 5 percent.
It also temporarily reduces the advertising tax rate to zero percent.