MeRSZ online
okoskönyvtár
Több száz tankönyv egy helyen.
Online. Bárhol. Bármikor.
Taxation in General: Hungarian Tax System
2010 - Switch to a single rate tax system
The figures already showed in 2010 that the Hungarian personal income tax system could not stay within the former framework: neither the number of taxpayers nor the increasing tax burden paid by them reached the minimum level required for financing the state budget, and in the meantime there were no incentives or social sensitivity either.
Although the idea of the linear tax system - based on the single rate (19 %) Slovakian system - was mentioned several times during the former years, this was manifested at the level of the official taxation policy in the summer of 2010 in the form of the first economic action plan, whereby the government promised to introduce the single-key income tax, eased with family elements, within two years and to terminate tax credits [24]. Accordingly, the personal income tax system was basically transformed, the two rates were terminated and replaced first by the 16 %, then the 15% flat rate.
The former system of allowances - that was quite diverse earlier and mainly preferred consumption - was also terminated and replaced by the family tax allowance mainly preferring families with two or more children and from 2014 by the family contribution allowance that extended the family tax allowance and also covered the poorest families. In addition, allowance is/was granted to young couples and to people living with handicap, while the tax allowance on insurance was practically terminated and the tax policy does not give preference to IT consumption, either. The minimum wage was raised significantly - and once its tax exemption was terminated - the number of actual taxpayers and the per capita tax revenues considerably increased and, of course, the state budget can also expect higher revenues from the population. In the meantime, however, there was a basic reshuffle on the labour market, the former 10% unemployment rate went down below 4 %, which further increased the number of taxpayers and the size of per capita tax, which still failed to reach the level of 2004 at nominal value.
As can be seen, extremely large changes took place every four years on average, in harmony with the political cycles, but the impact of various tax changes should mainly be measured through the reactions of the citizens. An appropriate indicator is the trend in the number of taxpayers as the taxpayers typically pay or do not pay or dodge taxes if they feel that the give and take is not fair and they pay a too high price for the public goods in return for the “service” they receive.
The table below also shows that the taxpayer behaviour is not necessarily determined by the size of the effective, per capita tax.
Harvard
(): . : .
: /hivatkozas/m1021tights_422/#m1021tights_422 ()
Chicago
. . . : .
(: /hivatkozas/m1021tights_422/#m1021tights_422)
APA
(). . .
(: /hivatkozas/m1021tights_422/#m1021tights_422)
9. Figure. Growth of personal income tax revenues calculated at current price, 1995-2018*
The optimal tax policy is always the result of a compromise, where the taxpayers accept that they have to pay but the tax price paid for the public goods does not exceed the equitable and fair level. The progressive tax scale may not fully conform with the principle of solvency as the collected tax largely depends on the payment willingness of certain taxpayer groups. This means that the selected tax system is basically qualified by the final result.
The periods following the change of the regime are separated from each other by the repeatedly dissolving financial balance and the related shifts of emphases, sometimes even within the same political cycles. The tax policy was given a subordinated role here, and sometimes vertical and sometimes horizontal equity is enforced, but only in a restricted way. For the most part, the main objectives focused on increasing tax revenues besides funds narrowing due to the grave deficit as well as - parallel with this and as a contrary effort - on guaranteeing an advantageous situation for foreign investors. The strengthening balance aspects after 1994 did not allow for a large scale reform of the tax system, the minor and larger adjustments guaranteed the fulfilment of the revenue plans on the short run but the deadline for decisions strongly narrowed down due to the political rotation and the decisions always focused on the next year’s tax revenues rather than on a tax base to be formed four years later.
During the first seven years after the tax reform the system - including all the three main tax types - kept its original features reflecting certain social policy elements, laying a lower tax burden on groups with low income in terms of both personal income tax and VAT. These features gradually disappeared after the correction in 1995, the allowances and benefits promoting the enforcement of social policy were removed from the personal income tax system and then from the VAT system. The tax burden was gradually transferred onto people with average wage. The increasing budgetary deficit, then the financial crisis in 2008 also buried the former personal income tax system, and the system had fewer taxpayers and an increasing average tax burden until 2010.
From 2010, the personal income tax system was basically restructured, as against the former years, fewer people avoid taxes due to the lower tax rates and lower social insurance burdens and due to the family-child support (which is well above the average wage) thus they can legally reduce the amount of tax.
The introduction of the single rate tax system did not promise a clear turnaround but if we look at the trend in the number of taxpayers and the number of per capita burdens on the taxpayers, we can see that it fulfilled the expectations that had, in fact, not been anticipated.
Tartalomjegyzék
- Taxation in general: Hungarian Tax System
- COPYRIGHT PAGE
- I. Chapter. First things first
- II. Chapter. Social security system – social solidarity
- III. Chapter. Personal Income Taxation
- IV. Chapter. Calculation of the personal income tax and contributions for earned income
- V. Chapter. Certain defined benefits, fringe benefits (cafeteria), separate taxable income
- VI. Chapter. Corporate tax: double taxation or the social expenditure of the enterprises
- VII. Chapter. Hungarian Tax reform 1988-2020
- VIII. Chapter. Value Added Tax
- Rudiments of sales taxes
- Main principles and peculiarities of the VAT system
- The Hungarian VAT system
- VAT subject (Tax client)
- Basis of assessment
- Scope of those liable to pay VAT and reverse taxation
- Exemptions from VAT
- Genuinely VAT exempt transactions
- Tax rates in VAT
- Special methods for establishing VAT
- Taxation of travel agencies (tour operators) based on their margins
- Small rural producers – compensation surcharge
- Secondhand trading – taxation based on the difference
- Rudiments of sales taxes
- IX. Chapter. Fundamental principles of international taxation, structure of the model agreements taxation of salaries
- Summary
- References
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//
BibTeXEndNoteMendeleyZotero
gomb segítségével választhatsz, hogy fejezetről fejezetre lapozva vagy inkább folyamatosan görgetve olvasnád-e a könyvet.
