1% Local Business Tax benefit in Hungary for 2021

Written by: Timea Kocsis
10 Feb, 2021
Accounting · Tax · Tax counseling

You have a business in Hungary and you are an SME company in Hungary?

If yes, this is may be very important for you. It is not too late to request the 1% benefit of Local Business Tax for 2021.

The Hungarian State reduced the Local Business Tax to be paid for 2021 because of the pandemic to help the Hungarian small and medium size companies and self-entrepreneurs.

Those SME companies whose net revenue or total assets & liabilities do not exceed HUF 4 billion according to the 2019 annual report are entitled to pay 1% LBT instead of 2% for the year 2021.

This reduction also applies for the tax advance payment what is due on the 16th March.

As this benefit is NOT an automatic benefit for SMEs, it has to be requested by 25 February 2021.

If you need more clarification on this topic, ProacTeam Hungary is ready to help you to understand better, please do not hesitate to contact us.

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