Taxation in Hungary is divided into central and local levels. While central taxes constitute the revenues of the state budget, local taxes are due to the municipalities.
The main national taxes are the corporate income tax, local business tax, value added tax (VAT), innovation contribution and a special surtax on certain companies (e.g. those in the financial sector). Other taxes include transfer tax and real property tax. A minimum tax can apply in certain circumstances. There is no branch profits tax or capital tax.
Hungary has fully implemented the EU parent-subsidiary, interest and royalties, merger and savings directives into domestic law.