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Employers Have Spoken Out About the Modification of the Kata

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The itemized tax (kata) for small-tax individual entrepreneurs can strengthen small businesses and contribute to the whitening of the economy, but provisions that constitute unjustified restrictions or disproportionate burdens need to be amended, the National Association of Entrepreneurs and Employers (VOSZ) told MTI on Friday, evaluating the draft law to renew the tax type.

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The itemized tax (kata) for small-tax individual entrepreneurs can strengthen small businesses and contribute to the whitening of the economy, but provisions that constitute unjustified restrictions or disproportionate burdens need to be amended, the National Association of Entrepreneurs and Employers (VOSZ) told MTI on Friday, evaluating the draft law to renew the tax type.

·Budapest, Hungary
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The tax burden of some entrepreneurs could be reduced by up to one million forints per year with the introduction of the new KATA, while others may still benefit from flat-rate taxation. The National Association of Entrepreneurs and Employers examined the expected effects of the draft through specific entrepreneurial examples and concluded that in the case of pensioners, amending the rules would be particularly justified.

The pension situation of self-employed entrepreneurs could improve significantly with the planned reform of the kata. According to the current rules, one year of self-employed entrepreneurial activity is equivalent to only four months when calculating the amount of the pension, but from 2028 it could be counted as a full year. According to Bankmonitor's calculations, as a result of the change, instead of the 29 thousand forints calculated under …

According to the draft presented by the Ministry of Finance, renewable energy would be much more prominently included in our pensions.

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If you currently use the itemized tax for low-tax entrepreneurs, a full year of work counts as roughly four months in terms of your pension – after 40 years, you would receive a pension of roughly 29,000 forints. According to the new draft law, this could be a full year from 2028, so after 40 years, you could receive a pension of around 170-180,000 forints.

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A full-time worker with 40 years of employment can expect to earn up to 180,000 forints at the end of his life.

·Hungary
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Heti Világgazdaság broke the news in Hungary on Friday, October 9, 2026.
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