The Hungarian family tax credit is also outstanding in international comparison

The Hungarian family tax credit is also outstanding in international comparison

The Hungarian family tax relief also helps families in an international comparison, the Mária Kopp Institute for Population and Families (KINCS) emphasized in a statement on Monday.

Describing the May analysis by the Washington Tax Foundation, it was written that the level of family tax benefits provided by European states varies significantly. Among them, Hungary is at the forefront, the Hungarian family tax system makes a significant contribution to increasing the income of families.

The survey of targeted tax benefits for families compared the tax burdens of a single-earner family with two children and a childless, single worker with the same pre-tax gross income. In the countries surveyed, single-earner and families with two children were taxed at an average rate of 29.6 percent in 2019, while the average tax burden on a childless worker was 40.1 percent, which is 10.5 percentage points higher than that of a family with two children.

It was announced that since the introduction of the family tax system in 2011 and its extension to 2014, the Hungarian government has doubled and increased the personal income tax credit available to families with two children to HUF 20,000 per child per month, as a result of which Hungary finished seventh on the list. Nearly similar to Germany and Slovenia with 15 percent tax rate differences.

This means that the monthly net income of a Hungarian family with two children is thus 15 percent higher than that of a childless employee due to family taxation, they pointed out.

They added that the survey did not include the tax benefits available to large families, which are HUF 33,000 per child per month for third or additional children, while no other country provides personal income tax exemptions for mothers with four children outside Hungary.

According to the survey, the difference between the tax burden is the largest in Luxembourg (-21.1 per cent), where it is the most extensive tax credit in the countries studied. Poland came in second (-17.9 percent), followed by the Czech Republic (-17.3 percent). The difference between the tax burdens was the smallest in Turkey, where the difference was only -1.7 percentage points, with Greece (-3.0 per cent) and Norway (-3.6 per cent) at the bottom of the list.

Source:https://www.magyarhirlap.hu/belfold/20200601-a-magyar-csaladi-adokedvezmeny-nemzetkozi-osszehasonlitasban-is-kiemelkedo
Magyar HírlapKopp Mária Institute for Population and Families

Tags: Abroad  Family  Tax 

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