According to the latest changes in the tax regulations, the minimum amount which must serve as base of social contributions will be the minimum wage instead of the current double minimum wage from 2011.

Currently for employees, the minimum amount after which the social contributions have to be paid is the double minimum wage and there are only some exemption possibilities.

In case of entrepreneurs, a new definition was introduced from 2010, the activity-based earning (“tevékenységre jellemző kereset”), which serves as the base for the contributions.

According to the new modifications, the new mandatory minimum will be the minimum wage set by the Parliament. For those entrepreneurs, whose activity necessitates at least maturity exams, the minimum base will be set as the guaranteed minimum wage.

According to experts, the most applied base will be this guaranteed minimum wage since it does not need further documentation to justify.

Thus it seems that the activity-based earning which generated so many questions and discussions will get out of sight. A transitional rule can make even posterior changes which would exempt the entrepreneurs from 2010 from the application of the law. It would mean, that the entrepreneurs could not be obliged to pay any penalty in case they do not comply with the old rules.

The withdrawals of entrepreneurs (“vállalkozói kivét”) must be determined according to their personal contribution to the companies activities, which does not say any new, however the amount set by the entrepreneurs do not need to be justified with other than the normal accounting records, i.e. do not need to be supported with estimations, comparison studies, notes, etc. whether the amount set by the entrepreneurs is correct and in line with the normal market or industry conditions.