On June 15, 2015 the Hungarian Parliament voted on the next year’s tax package and approved the proposal to decrease the rate of the personal income tax from 16% to 15%. Since the dividend and interest withholding tax form an integral part of the personal income tax regime in Hungary, these two withholding tax rates will also be diminished.
In Hungary at present only private individuals are subject to withholding tax so the decrease in the withholding tax rate will have an impact only on private investors. The change of the tax rate has no impact on legal entities as they are subject to 0% withholding tax rates.
Impact on investors: Private investors` dividend and interest withholding tax obligation will decrease from 16% to 15% as of January 2016.