Taxes

Each year, our agency collects and provides the tax certification by January 31st, based on the member's earnings for the tax year. It is mandatory for every member to submit their income declaration for tax returns to the National Tax and Customs Administration (NAV) of Hungary. This declaration must include all types of earnings, including those obtained outside of the agency.

Deductions from gross wages in cooperative relationships (by cooperative members)

• 15% Personal Income Tax (PIT) – except for individuals under 25 years of age!

The PIT exemption for individuals under 25 applies to gross monthly incomes of up to 656,785 HUF.

Starting in 2025, this tax benefit can also be claimed by citizens of EEA countries and non-EEA countries bordering Hungary (Serbia, Ukraine).

• When employing students or retirees, neither the employee nor the employer is subject to additional tax obligations.

Deductions from gross wages in classical employment relationships

• 15% Personal Income Tax (PIT)
• 18.5% Social Insurance Contribution

Taxes payable by employers on gross wages

In the case of standard employment relationships, employers must pay the following tax:

• 13% Social Contribution Tax 

BUT: if a company utilizes services provided by pensioner or student cooperatives, it is exempt from paying taxes and contributions. As a flexible form of employment, there are no sickness, holiday, public holiday or termination costs. Most cooperative members contribute to company operations by performing part-time tasks.