Kata-Logue of Complaints: Chamber Backs Reform but Wants More
9 Articles
9 Articles
Kata-logue of complaints: chamber backs reform but wants more
The Hungarian Chamber of Commerce and Industry (MKIK) has described the draft reform of the flat-rate tax (kata) for small taxpayer sole traders as a compromise solution, saying it makes simple taxation available to a wider group and ties a higher tax burden to higher income, the MKIK announced in a statement to MTI.
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.
According to Billingo, about half of the Hungarian business community would choose taxation based on the reintroduced kata. Two-thirds of those affected do not consider the new amount of the tax to be too high. However, many are waiting for the detailed rules for now.
47.9 percent of taxpayers consider the tax planned for 2027 to be too high. Corporate invoicing is attractive, but many would like to change the rules.
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 …
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