Small business tax
Some businesses may choose to meet their income tax obligations under the small business tax (abbreviated in Hungarian as KIVA) rules rather than the corporate tax.
To qualify for a KIVA, certain conditions must be met, such as
the requirements concerning the organisational form,
the financial indicators and
certain other conditions.
Switching to small business taxation requires individual consideration. It is recommended that the possibility of switching be explored for eligible businesses where staff costs typically exceed the profits of the business or which plan to make significant developments by reinvesting their profits or raising capital.