hu-income-tax

Section 1 -- Quick reference

Quick reference field table

Field	Value
Country	Hungary (Magyarország)
Tax type	Személyi jövedelemadó (SZJA -- personal income tax)
Primary legislation	1995. évi CXVII. törvény (SZJA Act)
Supporting legislation	2022. évi XIII. törvény (KATA); 2019. évi CXXII. törvény (SZOCHO/TB)
Tax authority	Nemzeti Adó- és Vámhivatal (NAV)
Filing portal	NAV Online / eSZJA
Currency	HUF only
SZJA rate	15% flat on all personal income
Vállalkozói jövedelemadó	9% on entrepreneurial profit (standard regime)
KATA	HUF 50,000/month (B2C only, no employees)
SZOCHO	13% social contribution tax
TB	18.5% social insurance contribution
Filing deadline	20 May of the following year
Contributor	Open Accountants Community
Validated by	Pending -- requires Hungarian adótanácsadó sign-off
Validation date	Pending

Read this whole section before classifying anything.

Tax regime summary

Regime	Tax on	Rate	Best for
KATA	Fixed monthly	HUF 50,000/mo	B2C services, low admin
Átalányadózás	Deemed income	15% SZJA	Services with low real expenses
Standard (vállalkozói)	Actual profit	9% + 15% on withdrawal	High-expense businesses

Átalányadó cost ratios

Activity	Cost ratio
Retail (non-food)	90%
Listed activities (hair, repair, taxi)	80%
All other activities	40%

Conservative defaults

Ambiguity	Default
Unknown tax regime	STOP -- must determine
Unknown expense category	Not deductible
Unknown ÖVTJ code for átalányadó	STOP -- ratio depends on code
Unknown client type for KATA	Assume company (disqualifies KATA)

Section 2 -- Required inputs and refusal catalogue

Required inputs

• Minimum viable input — bank statement for the tax year. Acceptable from: OTP Bank, K&H Bank, Erste Bank Hungary, CIB Bank, Raiffeisen HU, MBH Bank, or fintech (Revolut, Wise).
• Recommended inputs — invoices, chosen regime confirmation, ÖVTJ code(s), NAV correspondence.
• Ideal inputs — complete bookkeeping, prior year SZJA return, contribution statements.

Refusal catalogue

• R-HU-1 -- Kft./Zrt. — Trigger: client is a limited company. Message: "This skill covers egyéni vállalkozó only. Kft. files corporate income tax (TAO). Please use a separate skill." (R-HU-1)
• R-HU-2 -- International income. — Trigger: significant foreign income. Message: "International income is outside scope. Consult an adótanácsadó." (R-HU-2)
• R-HU-3 -- Regime unknown. — Trigger: client has not confirmed KATA/átalányadó/standard. Message: "I cannot compute without knowing your chosen tax regime." (R-HU-3)

Section 3 -- Transaction pattern library (the lookup table)

3.1 Hungarian banks (fees and interest)

Hungarian banks pattern table

Pattern	Treatment	Notes
OTP BANK, OTP	Bank charges: deductible (standard regime)	Monthly fees
K&H BANK	Bank charges: deductible	Same
ERSTE BANK	Bank charges: deductible	Same
CIB BANK	Bank charges: deductible	Same
RAIFFEISEN	Bank charges: deductible	Same
MBH BANK, BUDAPEST BANK, TAKARÉKBANK	Bank charges: deductible	Same
REVOLUT, WISE (fees)	Deductible	Fintech fees
KAMAT (interest credit)	EXCLUDE from business income	Capital income (kamatjövedelem)
KAMAT (interest debit)	Deductible if business loan	Personal: EXCLUDE
HITEL, KÖLCSÖN (loan principal)	EXCLUDE	Principal movement

3.2 Hungarian government and statutory bodies

Government/statutory bodies pattern table

Pattern	Treatment	Notes
NAV, NEMZETI ADÓ	EXCLUDE	Tax payment
KATA BEFIZETÉS	EXCLUDE (if on KATA: this IS the tax)	KATA monthly payment
SZOCHO, TB JÁRULÉK	Deductible under standard regime	Social contributions
ÖNKORMÁNYZAT (municipality)	Deductible if IPA (local business tax)	IPA is deductible under standard
IPARŰZÉSI ADÓ, IPA	Deductible under standard regime	Local business tax

3.3 Hungarian utilities and telecoms

Utilities and telecoms pattern table

Pattern	Treatment	Notes
MVM, ELMŰ-ÉMÁSZ, E.ON HU	Deductible if business premises	Electricity; apportion if home
FŐGÁZ, TIGÁZ	Deductible if business premises	Gas
TELEKOM (MAGYAR TELEKOM), TELENOR, VODAFONE HU, YETTEL	Deductible: business phone/internet	Mixed: apportion
DIGI, INVITEL	Deductible: business internet	Mixed: apportion

3.4 SaaS and software -- international

SaaS and software pattern table

Pattern	Treatment	Notes
GOOGLE, MICROSOFT, ADOBE, META	Deductible expense	EU reverse charge ÁFA
GITHUB, OPENAI, ANTHROPIC	Deductible expense	Non-EU
SLACK, ZOOM, ATLASSIAN	Deductible expense	Check entity

3.5 Professional services (Hungary)

Professional services pattern table

Pattern	Treatment	Notes
KÖNYVELŐ, KÖNYVELÉS	Deductible	Accounting fees
ÜGYVÉD	Deductible if business	Legal fees
KÖZJEGYZŐ	Deductible if business	Notary
ADÓTANÁCSADÓ	Deductible	Tax advisory

3.6 Transport and travel

Transport and travel pattern table

Pattern	Treatment	Notes
MÁV, MÁVINFORM	Deductible if business	Train
BKK, BKV	Deductible if business	Budapest public transport
MOL, OMV, SHELL HU	Deductible: business portion	Fuel
WIZZAIR, RYANAIR	Deductible if business travel	Flights
BOLT, UBER	Deductible if business	Ride services

3.7 Food and entertainment

Food and entertainment pattern table

Pattern	Treatment	Notes
TESCO, ALDI, LIDL HU, SPAR, PENNY	Default: NOT deductible	Personal provisioning
ÉTTEREM, RESTAURANT	Deductible if documented business	Representation with documentation

3.8 Internal transfers and exclusions

Internal transfers and exclusions pattern table

Pattern	Treatment	Notes
SAJÁT ÁTUTALÁS, OWN TRANSFER	EXCLUDE	Internal
KÉSZPÉNZFELVÉTEL, ATM	EXCLUDE (default: drawings)	Ask client
BEFIZETÉS	EXCLUDE	Owner deposit

Section 4 -- Worked examples

Example 1 -- Átalányadó IT consultant

Input: Revenue HUF 18,000,000, 40% cost ratio, single. Computation: Deemed costs = HUF 7,200,000. Taxable = HUF 10,800,000. SZJA = 15% = HUF 1,620,000. SZOCHO = 13% = HUF 1,404,000. TB = 18.5% = HUF 1,998,000.

Example 2 -- KATA disqualification

Input: KATA freelancer invoices HUF 500,000 to a Kft. in March. Result: Immediate KATA loss for entire year. Must re-file under standard or átalányadó. All income re-taxed.

Example 3 -- Standard regime, two-layer

Input: Revenue HUF 30,000,000, expenses HUF 12,000,000, withdraws HUF 10,000,000. Computation: Profit = HUF 18,000,000. Vállalkozói adó = 9% = HUF 1,620,000. SZJA on withdrawal = 15% x HUF 10,000,000 = HUF 1,500,000. SZOCHO on withdrawal = HUF 1,300,000. TB = HUF 1,850,000.

Example 4 -- Minimum contribution trap

Input: Revenue HUF 1,500,000/year. Computation: Monthly income HUF 125,000. Minimum base HUF 290,800. SZOCHO = HUF 37,804/mo. TB = HUF 53,798/mo. Annual contributions = HUF 1,099,224. This is 73% of revenue -- flag as potentially unviable.

Section 5 -- Tier 1 rules (deterministic)

5.1 SZJA rate

• SZJA rate — Flat 15% on all personal income. No progressive bands. percent (SZJA tv. § 8.)

5.2 KATA rules (post-2022 reform)

• KATA B2C only rule — B2C only -- ANY invoice to a legal entity disqualifies for the entire year. HUF 50,000/month (main) or HUF 25,000/month (auxiliary). Covers income tax + social contributions. Does NOT cover ÁFA or IPA. Revenue above HUF 12,000,000: must register for ÁFA. (2022. évi XIII. törvény.)

5.3 Átalányadózás

• Átalányadózás rules — Revenue limit: HUF 24,000,000 (HUF 36,000,000 for listed retail). Max 1 employee. Cost ratios: 90%/80%/40%. Taxable = revenue x (1 - ratio). (SZJA tv. § 50-56.)

5.4 Standard regime

• Standard regime two-layer taxation — Two-layer: 9% vállalkozói jövedelemadó on profit + 15% SZJA on withdrawn amounts. (SZJA tv. § 44-49.)

5.5 Social contributions

• Social contribution rates and minimum base — SZOCHO: 13%. TB: 18.5% (pension 10%, health 4%, labour 3%, accident 1.5%). Minimum base: HUF 290,800 (no qualification) or HUF 348,800 (qualification required). Mandatory regardless of income. (2019. évi CXXII. tv.)

5.6 Local business tax (IPA)

• IPA rules — Up to 2% of net revenue. Set by municipality. Applies to all regimes including KATA. Deductible from standard regime income. (1990. évi C. tv.)

5.7 Regime switching

• Regime switching rule — Must notify NAV by 31 December of prior year. Cannot switch mid-year. (SZJA tv.)

Section 6 -- Tier 2 catalogue

6.1 Choosing between regimes

• Choosing between regimes guidance — Why: Total burden (tax + contributions) varies significantly. Default: Present comparison. Question: "What are your actual expenses? Do you invoice businesses or individuals only?"

6.2 Mixed-activity cost ratios

• Mixed-activity cost ratios guidance — Why: If multiple ÖVTJ codes, different ratios may apply. Default: Use 40% (conservative). Question: "What are your ÖVTJ activity codes?"

6.3 Dual KATA + employment

• Dual KATA + employment guidance — Why: Hours threshold (36/week) and B2C-only requirement. Default: Verify eligibility. Question: "How many hours/week are you employed? Are all KATA clients individuals?"

Section 7 -- Excel working paper template

Sheet "Transactions"

Columns: Date, Counterparty, Description, Amount (HUF), Category, Deductible amount, Default?, Question, Notes.

Sheet "Tax Computation"

Branches by regime: KATA, átalányadó, or standard.

Section 8 -- Bank statement reading guide

CSV formats. OTP Bank exports semicolons with YYYY.MM.DD. K&H uses comma CSV. Erste uses semicolons. Common columns: Dátum (Date), Partner (Counterparty), Összeg (Amount), Egyenleg (Balance).

Hungarian language variants. Common: átutalás (transfer), befizetés (deposit), kifizetés (payment), díj (fee), kamat (interest), számla (invoice/account), bérleti díj (rent).

KATA payments. Monthly HUF 50,000 to NAV. If visible, confirms KATA status.

IPA payments. Twice yearly (March 15, September 15) to local municipality (önkormányzat).

Section 9 -- Onboarding fallback

9.1 Entity type

• Entity type inference/fallback — Inference: Egyéni vállalkozó from bank account type. Fallback: "Are you an egyéni vállalkozó or Kft.?"

9.2 Tax regime

• Tax regime inference/fallback — Inference: KATA payments = KATA. Átalányadó from NAV correspondence. Fallback: "Which tax regime: KATA, átalányadózás, or standard?"

9.3 Client base

• Client base inference/fallback — Inference: Incoming from company names vs individuals. Fallback: "Do you invoice companies (Kft., Zrt.) or only individuals?"

9.4 ÖVTJ code

• ÖVTJ code inference/fallback — Inference: From trade licence or activity description. Fallback: "What is your ÖVTJ activity code?"

9.5 Employees

• Employees inference/fallback — Inference: Salary outflows. Fallback: "Do you have employees?"

Section 10 -- Reference material

Test suite

Test 1 -- Átalányadó IT, 40%. Revenue HUF 18M. SZJA HUF 1,620,000. SZOCHO HUF 1,404,000. TB HUF 1,998,000. Test 2 -- KATA hairdresser. B2C, HUF 8M. Annual KATA HUF 600,000. No SZJA return. Test 3 -- KATA disqualification. Invoice to Kft. = full year re-tax. Test 4 -- Standard two-layer. HUF 30M revenue, HUF 12M expenses, HUF 10M withdrawn. Vállalkozói 9% + SZJA 15% on withdrawal. Test 5 -- Minimum contribution trap. HUF 1.5M/year. Contributions exceed 73% of revenue.

Edge case registry

EC1 -- KATA invoicing companies. Immediate disqualification. EC2 -- Átalányadó revenue exceeded. Lost for following year. EC3 -- Regime comparison. Must include all contributions. EC4 -- Minimum contribution base. Mandatory even if income is lower. EC5 -- KATA + employment hours. Must be under 36/week. EC6 -- IPA deductibility. Only under standard regime. EC7 -- ÁFA threshold with KATA. HUF 12M triggers ÁFA registration but not KATA loss. EC8 -- Year-end regime switch. Notify NAV by 31 December.

Prohibitions

• NEVER allow KATA for taxpayers invoicing legal entities
• NEVER apply progressive rates -- Hungary uses flat 15% SZJA
• NEVER ignore minimum contribution base
• NEVER combine KATA with separate SZOCHO/TB
• NEVER allow mid-year regime switch
• NEVER forget IPA -- applies to all regimes
• NEVER deduct actual expenses under átalányadó
• NEVER confuse 9% vállalkozói adó with 15% SZJA
• NEVER present calculations as definitive
• NEVER advise on international structures or crypto

Sources

1. 1995. évi CXVII. törvény (SZJA Act)
2. 2022. évi XIII. törvény (KATA)
3. 2019. évi CXXII. törvény (SZOCHO/TB)
4. 1990. évi C. törvény (Local taxes)
5. NAV -- https://nav.gov.hu

Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as an adótanácsadó or equivalent licensed practitioner in Hungary) before filing or acting upon.

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