Hungary Approves Reform Measures including Corporate Tax Rate Cut

On 12 December 2016, the Hungarian parliament reportedly approved legislation to introduce a single corporate tax rate of 9%. The 9% rate replaces both the current 10% rate on taxable income up to HUF 500 million and the 19% rate on taxable income exceeding that amount. Other measures approved include:

• A reduction in the effective tax rate condition for controlled foreign company (CFC) purposes from 10% to 9%;
• A reduction of the small business flat tax (KIVA) rate from 16% to 14% in 2017 and…