anotherone said:
Taxation of dividends
In
the 2022 tax year, income from dividends paid to individuals is subject to a 15 percent personal income tax. According to the main rule, the payer must determine the tax charged on the dividend at the time of payment, deduct it, and pay it by
the 12th of the month following the payment and provide data in return 08.
The tax on dividends earned in a foreign currency must be determined in the same foreign currency, deducted and converted at the exchange rate valid at the time the income was earned, and paid in forints.
In the absence of a payer, the private individual must determine the tax on the dividend and dividend advance himself, and the individual must pay the tax by the 12th day of the first month of the quarter following the payment [Article 66 (3) of the Szja Act].
Taxation of dividend advances
The payer must deduct 15% personal income tax from the dividend advance paid to private owners , which the private individual can calculate as a tax advance against the tax determined after the final dividend. The
dividend advance must be indicated in the return for the year of payment only as information (if a dividend advance was paid in 2021, then on line 56 of sheet 21SZJA-B), i.e. it is not declared as separately taxable income.
Declaration of dividend advance as actual dividend
If the previously paid dividend actually turns into a dividend in 2021, in that case, the
income from the dividend must be declared on line 167 of sheet 21SZJA-04 based on the data according to the report . The tax
previously paid on the dividend advance is shown on line 66 of sheet 21SZJA-C , but the individual no longer has to pay the tax on the declared dividend as his own obligation.
Social contribution tax liability
After the dividend payment, in addition to the personal income tax burden of 15 percent,
it is also necessary to pay social contribution tax, the rate of which is 13 percent . The social contribution tax must be paid until the
sum of all incomes subject to the social contribution tax obligation reaches 24 times the minimum wage , i.e. HUF 4,800,000 in 2022. In the case of calculating the social contribution payment ceiling, the total amount of all income that falls under the obligation to pay social contribution, such as wages, membership income, income from property rental, dividends, can be taken into account.
It is important to note that
social contribution tax does not have to be paid on the dividend advance , it is only necessary if the dividend advance is converted into a dividend.
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So if you want to get paid via dividencds from a Hungarian company while living in Hungary, you will pay CIT 15% + Dividend tax 15% = 30% and then, you will have to pay social contribution which is maximum 13% of HUF 4,800,000 = 614000 HUF = 9820 euros
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