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Tax Allowance For Mothers Raising Four or More Children

Tax Allowance For Mothers Raising Four or More Children

Hungary
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As of 1 January 2020, a new tax allowance is available under the Hungarian Personal Income Tax Act, which provides for that mothers raising four or more children might be exempted from the payment of personal income tax.

Previously, the tax base of the personal income tax could be reduced with two tax allowances: the family tax allowance and the allowance for couples in their first marriage. As of the beginning of this year, a third tax allowance has been introduced: the allowance granted to mothers raising four or more children. According to the new provisions, persons eligible for this allowance might deduct certain incomes from their tax base calculated for the payment of personal income tax. In particular, salary received under employment contract might be deducted from the tax base.

According to a governmental press conference held in the beginning of 2020, the target of the Hungarian Government is to extend the personal income tax exemption also to mothers raising three children as of 1 January 2021. Currently this proposal is still under political discussion.

By Gabriella Galik, Partner, KCG Partners Law Firm

KCG Partners at a Glance

KCG Partners is a Hungarian business law firm providing a comprehensive range of legal services to international and local clients seeking local knowledge and global perspective. The firm comprises business-minded lawyers with sector-specific expertise, creating value for clients by applying a problem-solving approach and delivering innovative solutions.

The firm has a wealth of knowledge in corporate law, M&A, projects and construction, energy, real estate, tax, employment, litigation, privacy and forensics, securitization, estate planning and capital markets.

To address clients’ regional and international concerns, the firm maintains active working relationships with other outstanding independent law firms in Central and Eastern Europe, whilst senior counsel Mr. Blaise Pásztory brings over 40 years’ of US capital market and fund management experience.

KCG Partners Law Firm is the result of the teamwork of passionate and talented lawyers guided by the same principles and sharing the same values: 

  • Our most valuable asset is our people. They are the engine of our business and the key to our success.
  • We push boundaries by looking for innovative solutions that can empower our clients to achieve greater results.
  • We place our experience, commitment and professionalism to your service.
  • We are driven by our vision to shape and lead the Hungarian legal market and become a first choice law firm in our practice areas.

Firm's website: http://www.kcgpartners.com