Two government decrees published on Tuesday eliminate a 13 percent employer contribution for a tax that already applies to performers, journalists and associated professions (ekho) and allow the corporate tax to be paid in US dollars or euros as well as forints.
According to a finance ministry statement, many taxpayers will find it especially worthwhile to choose ekho from Sept. 1. Noting recent changes to rules for the simplified business tax (kata) which excluded many people from taking advantage of the tax, the ministry said the number of people who can pay the ekho tax may increase significantly from September when the tax will amount to 15 percent of income. So writers, journalists, speakers, artists, and representatives of professions that assist in performances such as sound engineers, set designers, extras, make-up artists, costume designers, would do well to opt for ekho, it added. The tax applies for those with an annual income of up to 60 million forints, with taxes and contributions paid up to the minimum wage. The new decree also aims to help construction companies by introducing simplified administration and measures that lead to cost savings on audits. Meanwhile, citing the economic situation due to the war in Ukraine, the government is allowing corporate tax to be paid in euros or US dollars.
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