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Hungary reduced corporation tax and introducing a standard rate of income

The new prime minister of Hungary, Viktor Orbán conservative, announced this month of June 2010, the pillars of its economic and fiscal policy, including a reduction of corporate tax (from 19% to 10%) and the introduction of an income tax of 16%. These measures, which apply in the next two years, will be accompanied by the introduction of a new tax on banks and insurance companies, with which the Executive plans to enter up to 700 million euros annually. "We need a new tax system that is based on trust and not mistrust," Orbán said in a speech before the full Parliament, controlled a majority of two thirds of the conservative party Fidesz. He added that not propose to "fix the (tax system) but to create a new old", while announcing the removal of ten small taxes, such as the tax on inheritances. He also stressed "the importance of promoting small and medium enterprises (SMEs)" and "streamlining bureaucracy." In this regard, he added that reducing the corporate tax cut will apply to companies with profits below the 500 million forints (1.8 million euros).