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Oct 24, 2019

Hungary climbs one place in World Bank's Doing Business Report

Hungary has moved up to 52nd place in the World Bank’s latest annual ease of doing business ranking.

Hungary has moved up to 52nd place in the World Bank’s latest annual ease of doing business ranking.

Hungary’s score currently stands at 73.4, which elevated the country one place higher in the rankings compared to the previous year. New Zealand ranked as the leader with 86.8, while Somalia placed last on the list with a score of 20.0.

Within the highly acclaimed Doing Business Report, the World Bank noted that Hungary had made paying taxes easier by upgrading the internal electronic tax system, while making paying taxes less costly by reducing the payroll tax.

The World Bank added that Hungary also raised its overtime allowance to 400 hours per calendar year, making employment regulation more business-friendly.

“Authorities could benefit from the experience of Hungary where employers have the freedom to use fixed-term contracts of up to five years for tasks of a permanent nature,” the report added.

According to MTI, Hungary’s Finance Ministry acknowledged the improvement in the country’s ranking in a statement on Thursday.

It noted that the payroll tax had been reduced further from July 1st and that businesses’ burden would ease more from 2021 when the National Tax and Customs Authority (NAV) starts preparing corporate tax returns as it already does for private individuals.

Photo credit: Business Standard