background image
Hungary Introduces Tax-Free Allowance for Individuals Under the Age of 25 — Orbitax Tax News & Alerts

Hungary has published Law XXXIV of 2021 in the Official Gazette, which amends the Personal Income Tax Law to provide for the introduction of a tax-free allowance (discount) for young individuals under the age of 25 in respect of employment income, including self-employment income. The allowance is equal to the average monthly gross earnings of full-time employees as officially published by the Central Statistical Office for the month of July of the year preceding the reference year, considering the number of months an individual is eligible for the allowance during a tax year.

Law XXXIV of 2021 enters into force on 1 January 2022 and the allowance is available for employment income for the period beginning after 31 December 2021 and for employment income earned earlier but paid after 10 January 2022.

Click the following link for average monthly gross earnings published by the Central Statistical Office, which includes a most recent monthly average of HUF 414,405 for February 2021.