The bill plans to change the rules of the itemized tax of small business taxpayers, which will become effective on 1 January 2021, based on the taxpayer’s foreign interests. The change will concern the income received by the small taxpayer from a foreign legal person classified as an affiliate or from foreign customers and the relevant taxes.
If the income of a taxpayer eligible to pay the itemized tax is received from a foreign affiliate or in the case of income exceeding HUF 3 million, from a foreign customer, the small taxpayer will be subject to the 40% tax but the tax base will only be 71.42 percent of the portion of the income that exceeds HUF 3 million. (RSM)