P.I.T Flashcards
Who pays P.I.T?
- Taxpayers, tax entities, tax authorities
- Natural person, legal entity
- Hungarian citizen – as a general rule
- Foreign citizen
On what do we pay P.I.T?
- Property
- Income / Revenue
- Goods
- Services
P.I.T definition
Personal income tax is a direct, general tax paid obligatory to the central budget by private person who has continuous income
15% in Hungary proportional (in2024)
Taxable entity (person)
private or legal persons who are bound of tax payment
Taxpayer
private or legal person (organization) who actually pays the tax
Tax rate
it describes the ratio (usually expressed as a percentage) at which a business or person is taxed
Tax liability
the obligation to pay the tax
The taxpayer’s rights and obligations (PIT)
Notifying the Tax Authority about starting (working) activity
Declaring income and revenue in an official form
Handing in the tax declaration before the deadline
- (in Hungary in May – as a general rule)
Preserving all official documentation (in Hungary for 5 years)
Tax allowances / Tax benefits (With examples)
Special rules for special activities
Family tax allowance
first-marriage tax allowance
what’s The total earnings of an employee called?
Gross pay
What are net earnings ? (equation)
Net earnings=Gross earnings minus deductions
Example of deductions
Income taxes (federal, state, city)
Social Security/Medicare Taxes
Insurance, Savings, Charity, etc.
Summary
Personal income tax is a direct, general tax paid obligatory to the central budget by private person who has income continuous.
The tax systems can apply wide range of regulations.
The policymakers can support people with different incomes, or with different attributions.
