Hungary Corporate Tax (TAO vs KIVA & HIPA) Calculator
Determine optimal corporate tax structure between EU-leading 9% TAO corporate income tax and 10% KIVA small business tax.
Direct Statutory Calculation Result
Calculation Parameters (Act I of 2012, Flt., Htv., & Tax Codes)
Statutory Itemized Breakdown
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Frequently Asked Statutory Questions
What is the corporate income tax (TAO) rate in Hungary?
Hungary offers the lowest statutory corporate income tax rate in the European Union at a flat 9%, governed by Act LXXXI of 1996 (Tarsasagi ado).
What is KIVA (Kisvallalati ado) and how does it work?
KIVA is a 10% small business tax that replaces both the 9% TAO and the 13% employer Social Contribution Tax (SZOCHO). The tax base is the sum of personnel costs (payroll) plus distributed dividends/capital withdrawals.
When is KIVA more advantageous than TAO?
KIVA is generally more beneficial for companies with high payroll costs relative to profits (e.g. IT consultancies, software houses, professional service firms), because paying 10% KIVA on payroll saves the 13% SZOCHO tax.
What is HIPA (Helyi iparűzesi ado)?
HIPA is a municipal local business tax levied on net turnover minus cost of goods sold (ELÁBÉ) and subcontractor fees, up to a statutory maximum rate of 2% (determined by the local city council).
What is the corporate minimum tax in Hungary?
Under Hungarian law, companies must pay corporate tax on either their actual profit or a minimum tax base of 2% of total revenue (jovedelem-(nyereseg-)minimum), unless an official loss declaration is justified.
Engr. Muhammad Shahzad
Verified Fiscal & Statutory AlgorithmistLead software architect and statutory modeling specialist with over a decade of experience designing enterprise-grade algorithmic frameworks, double-entry financial models, and statutory compliance engines across European and global regulatory jurisdictions.
Engr. Muhammad Shahzad
Principal Financial Systems Architect & Central European & Hungarian NAV Fiscal Compliance Lead
Lead software and systems architect specializing in high-performance browser computing, algorithmic validation, financial models, and zero-telemetry client-side privacy architecture.