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Hungary to Introduce Measures to Counter Abuse of Small Business Tax with Concealed Employment

|Proposed Changes|Hungary
Hungary

Hungary's Ministry of Finance has announced that regulations will be made that include measures to reduce the practice of "concealed employment". This practice involves enterprises not employing people within the framework of an employment agreement, but as individual entrepreneurs who pay their taxes themselves using the small business tax (KATA) system. As a result, these enterprises do not pay any employer contributions. To counter such concealed employment, where the total value of trans…

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