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Also i would like to know at what tax rate are these incomes charged

My experience is that in most countries that operate a 13-month salary scheme, they simply take the annual salary and then divide it by 13, you don't get paid any extra and it is assessed for taxes and insurances at the same rate, just like any other.

Bonuses are regarded as income.

This will take you to the EU webpage that describes the taxation scheme.

Thank you

There is no legally required 13th month salary in Hungary. A company might agree to pay you one, but it is unlikely. But many employers here do give "bonuses" in the form of "food vouchers" as part of income. I don't think these are taxed the same as direct cash income.

Cynic wrote:

This will take you to the EU webpage that describes the taxation scheme.

This is a bit misleading. Because the 15% rate mentioned is just income tax. But income is also taxed with "social taxes". So in the end about one-third of your income is taken by the government each month.

klsallee wrote:

Cynic wrote:

This will take you to the EU webpage that describes the taxation scheme.

This is a bit misleading. Because the 15% rate mentioned is just income tax. But income is also taxed with "social taxes". So in the end about one-third of your income is taken by the government each month.

Not at all; the link provided says "Your employer deducts income tax and social contributions from your wages, daily allowances or other remuneration."  Further, it contained a direct link to the Hungarian Government National Tax and Customs Administration website, which has details of those taxes.

Hope this helps.

Cynic
Expat Team

Cynic wrote:

Not at all; the link provided says "Your employer deducts income tax and social contributions from your wages, daily allowances or other remuneration."  Further, it contained a direct link to the Hungarian Government National Tax and Customs Administration website, which has details of those taxes.

I did of course write "misleading", not "wrong".

That is, it gave only one tax rate: 15%. And did not mention any other numbers. Omission is "misleading". And by simply writing "Your employer deducts income tax and social contributions from your wages" says nothing about total amounts deducted. And not everybody follows links, especially since one link is in Hungarian, and the other, in English, is not one where one can find total tax information easily.

I know a few expats who thought they would get 85% of their salary here, because only the 15% income tax rate alone is quoted. But the total tax is about 1/3 and that should be spoken out clearly.