How are PIT, soco and VET contributions evolving?
What can we prepare for in the field of personal income tax, social contribution tax, vocational training contribution? January 1, 2022 also introduced new tax rules that more people can benefit from.
Every year, changes are typical from January 1 in the field of taxation. It is no different in 2022 either.
We’ve put together a bunch of the essentials that don’t hurt to be aware of.
1. PIT and VAT
An important change in personal income tax (PIT) is expected: persons under the age of 25 do not pay personal income tax up to the level of the previous average gross earnings in July on their wages and other income from the consolidated tax base from self-employment and certain self-employment. . This amount was HUF 433,700 in July 2021.
Because of the changes, sole proprietors are better off opting for a flat-rate tax. The income threshold will increase from the previous general HUF 15 million to ten times the current annual minimum wage, which will amount to HUF 20 million in 2022. The cost ratios applicable to each activity will also become more favorable, the napi.hu.
Did you know that you have a tax credit for certain female and male tumors, cancers and diseases?
It is also a change that from 1 January 2022, 15 per cent of the income from the cryptographic asset transactions of private individuals will be paid. The certified costs for the current year can be accounted for and the tax equalization can also be applied.
VAT, ie the general sales tax on products, will not be reduced for any product in 2022, but from January 1, after the tax expires, within 1 year of the occurrence of the cause, the taxpayer will request the tax authority to refund the VAT paid to the seller by mistake. The napi.hu.
Reverse charge applies to the sale of certain cereal and steel products and to the transfer of a tradable right to emit a greenhouse gas (emission unit).
2.Vocational training contribution and social contribution tax (soco)
An important change is that from January 1, 2022, the 1.5 percent vocational training contribution payable by employers for wage income will be abolished.
In addition, the rate of social contribution (soco) is falling from the current 15.5 per cent to 13 per cent. At the same time, the rate of the simplified public burden contribution (ekho) on the payer will be reduced to 13 percent, he wrote. napi.hu.
There will also be a change from January 1, 2022 for small business taxes. The rate of kiva drops to 10 percent.
The local business tax (hipa) for small and medium-sized businesses will also be reduced, half as much as in 2021. The amount may therefore not exceed 1%, provided that the company’s turnover or balance sheet total does not exceed HUF 4 billion.
However, municipalities cannot increase taxes compared to the rules that were in effect on December 20, 2020.
Source: Napidoktor by napidoktor.hu.
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