Small Business Tax (KATA)

The taxpayer have to pay the Small Business Tax (KATA) until 12th of the next month to the National Tax and Customs Administration (account number: 10032000-01076349) Please keep in mind to indicate the taxmumber in the comment field.

There is no need to pay the tax in the following cases for the full month:

• has sickness benefit, accident related benefit, parental aid, child benefit, child aid, child raising support or care allowance
• is at volunteer military service,
• is in custody or jail,
• is inactive as entrepreneur,

expect if he/she does business related activity.

If there is no need to pay the tax, the taxpayer have to report the situation along with the supporting documents to the National Tax and Customs Administration.

Keep in mind that if the full time entrepreneur was not able to work, he/she sould report this situatuion in every month to the Administration. If for some reason the entrepreneur is inactive, he/she has to pay the mandatory health contribution to the Hungarian Social Security Administration.

Definition of the part time entrepreneur

The taxpayer, who belongs to one of the following categories in the whole month is considered as part time entrepreneur:

• He/She is employed least 36 hours weekly
• belongs to the part time employed category based on Act LXXX of 1997.
• has social insurance according to European Union laws
• has social insurance according to other international agreement
• has Hungarian pension or invalidity insurance according to Act CXCI from 2011.
• is in a member in other company or has in any tax scheme unlimited liability
• homestead parent according to Act XXXI from 1997
• is a high school, college or a university student in European Union or in Switzerland