Information about local taxes
Under the empowerment of the Act Nr. 100 of 1990 on Local Taxes and according to its provisions the representative body of the local government may introduce local and community taxes with its decrees.
There are different types of local taxes in Nagytarcsa, which are expended on municipal development.
Building Tax
Building tax liability is linked to buildings. The tax base of building tax may be the net floor space expressed in square meters.
Subject to the tax are private individuals, legal persons and other organizations who is the owner of the building (or holder of a right regarding to the building) as of the first day of the calendar year.
The rate of building tax per annum is 850 HUF/sqm for tax based on net floor space.
Administration: the local government imposes the tax based on the tax declaration of the taxpayer.
Property Tax
The tax base is the actual area of the land parcel expressed in square meters.
Subject to the tax are private individuals, legal persons and other organizations who are the owner of the land (or holder of a right regarding to the land) as of the first day of the calendar year.
The rate of site property per annum is 20 HUF/sqm for tax based on the area of the parcel.
Administration: the local government imposes the tax based on the tax declaration of the taxpayer.
Please render your personal community tax return/data reporting form regarding properties/ buildings.
Your tax payment obligation is allocated in a decision, which contains the amount of payable tax and the deadline of payment. After that, the decision is transmitted by mail or electronically to the postal address/ client gate/ company gate.
The tax accounts where the payable tax shall be transferred, can be found in our website.
Local Business Tax
All business activities pursued (for income or profit) permanently or temporarily in the area of jurisdiction of a local government shall be subject to taxation.
The taxable person shall be the entrepreneur according to the act on local taxes, furthermore, the assets managed in a trust fund under a fiduciary asset management contract as provided for in the Civil Code shall be subject to taxation.
The character of the activity may be permanent or temporary.
An entrepreneur whose commercial domicile or place of business is located in the area of jurisdiction of a local government shall be regarded as conducting permanent commercial activities, regardless of whether any or all of his operations are conducted outside his commercial domicile (place of business).
Commercial activities shall be regarded temporary if, in the area of jurisdiction of a municipal government, an entrepreneur without a commercial domicile or place of business registered in such area is engaged in:
construction, or any activity, that directly results in income, provided that the entrepreneur does not have a commercial domicile or place of business registered in the area of jurisdiction in Hungary.
The tax base of local business tax – similarly to the tax liability – depends on whether the activity is permanent or temporary. Moreover in case of permanent activity of some certain taxpayers the act on local taxes provides a simplified setting of the tax base.
For permanent business activity the tax base of local business tax is the net sales revenue according to the local business act curtailed by the sum total of the original costs of goods sold and the value of mediated services, sums paid to subcontractors, material costs, and the direct costs of basic research, applied research and experimental development claimed for the tax year.
For any entrepreneur who is engaged in the pursuit of commercial activities on a permanent basis in the areas of jurisdiction of more than one municipal governments or abroad, the tax base shall be divided, with regard to the most characteristic nature of the activities performed, by the entrepreneur as prescribed in Schedule No. 3 of the act on local taxes.
For permanent commercial activities the maximum rate of tax per annum is 1,5% of the tax base.
For temporary commercial activities the tax rate shall be maximum 5,000 forints per calendar day.
The amount of the tax to be payed to the local government according to the domicile or place of business may be lessened with the items described in the act on local taxes (up to that amount).
Administration: the taxpayer sets, declares and pays the tax to the local tax authority.
References: Act Nr. 100 of 1990 on local taxes
If your accountant acts on behalf of you or your company, a power of attorney shall be rendered electronically to the local tax authority.
Motor vehicle tax
Motor vehicle tax shall be payed after vehicles with inland number plate and being officially in public traffic.
It is a yearly tax so as the subject to the tax and the person liable to pay the tax is the one having the vehicle in exploitation or in absence of that the owner of the vehicle on the first day of the tax year – according to the vehicle registry. The tax liability begins generally on the first day of the month following the involving of the vehicle in public traffic.
The tax on passenger vehicles (passenger car and motorcycle) is based on the capacity – expressed in kilowatt – and age (year of production) according to the vehicle registry.
For buses, caravans and mobile homes the tax is based on the net weight according to the vehicle registry.
For trucks the tax amount is based on the net weight plus the 50% of its carrying capacity.
For semi-trailers the tax base is the double of its net weight plus the positive difference of its highest permitted all-weight and the net weight of the semi-trailer.