Feb 1, 2011

New Taxation System in CEE

With the new year and a major shift to the Hungarian taxation system, we asked our At Home Real Estate colleagues around Central and Eastern Europe to inform us on the latest updates to the taxation systems in Czech Republic, Hungary, Poland, Russia and Slovakia.

Hungary saw the biggest change in taxation systems with a reduction to a flat 16% income tax. Read a more in-depth review of the new Hungarian taxation system here.

In Poland, the VAT, including that included in property prices, was raised from 22% to 23%.

In Russia, taxes related to property went unchanged. A planned property tax, based on the type and location of the property, was delayed. The social tax paid by employers towards employee pensions, social and medical funds increased from 26% to 34%.

In Slovakia, VAT increased from 19% to 20%. The nontaxable portion of salaries decreased, increasing taxes paid by employers and employees.

There were no changes to the taxation system in the Czech Republic.

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