Mária Lakatos

Taxation in General: Hungarian Tax System

Income not subject to or included in the consolidation

Every taxation system makes a distinction between income from wealth and work. The distinction is made because of the way of acquiring the income is different (also because the income form wages and the income from wealth entail entirely different costs and risks).

As a rule, for the various types of income not included in the consolidation linear tax rates are applied, which are identical with the marginal tax rate, i.e., they are taxed applying the highest tax rate. One finds here the interest, dividends proceeds from exchange gain and the proceeds of the sales of movable and immovable property.

Naturally, the Act clearly defines the accurate category. During the present course we discuss, e.g., the basic principles of the taxation of interest as an example.

Interest income is subject to a personal income tax of 15%: it is imposed on the yield (proceeds) and also on the exchange gain realized on the sale of securities denominated in HUF and issued by some EEA member state, (these represent a credit relation and are practically government bonds denominated in HUF, and no other obligation, such as, for example, health care contribution is imposed on them).

Taxation in General: Hungarian Tax System

Tartalomjegyzék

Kiadó: Akadémiai Kiadó

Online megjelenés éve: 2022

ISBN: 978 963 664 137 5

Taxation is a scheme for the state to provide revenue. The so collected money could then cover the public spending of the government. These are the so-called allocative and redistributive functions of the state budget. Although, taxation theory discusses the various tax types and analyses the various taxation tools very extensively, there is no absolute answer to the question, when and what type of taxation system would be optimal. Thus this introductory book on taxation deals with the three basic types of taxes - the income tax, the VAT and the corporation tax - in a very pragmatic way. There are legal texts and cases from both the international and also from the relevant Hungarian practice.

This book is recommended not only for students of economics but also for law students and practitioners beside anyone who is interested in the basic regulations of taxation.

Hivatkozás: https://mersz.hu/lakatos-taxation-in-general-hungarian-tax-system//

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