Day 119 Thank you for the Encouragement and the Reality of Start-up Expenditure in Hungary

3.40am

I am still editing the thesis, but I need to go to bed and sleep a couple of hours. The whole Love Shack’s been helping me today with advice and encouragement and friends on text and facebook and e-mail. Thank you so much to All of You! It means a lot. From the thesis:

`Start-up expenditure 2008 for entrepreneurial activity in Hungary:

• Obtaining and entrepreneur ID: 10.000Ft
• Police check: 2.000Ft

Further fees: if the entrepreneur is a full t-time student or in full-time employment somewhere else or for some other reason the fees of national insurance and pension contribution is paid after the person in question, exemption of paying entrepreneurial monthly fees can be obtained.
If the entrepreneur cannot obtain exemption based on the above and does not have a job over 36 hours/week the following fees are payable:

Data based on 2008:

• National Insurance: 1.950/month
• National Insurance contribution: 6% + 5%m = 11%
• Pension contribution:
• Private pension system:
• Basic contribution: 24% + 1,5% = 25,5%
• Private pension contribution 8%
• Non private pension system: 24% + 9,5 % = 33,5%
  
  
• Entrepreneurial tax: 4%

These fees are compulsory to pay after the minimum wage which in 2008 was 69.000Ft regardless the business creates any profit or not. However due to the austerity measure the fees payable were from 69.000Ft being the base to 138.000Ft.

Further fees:

• 18% VAT is payable up until 1.500.000Ft income and 36% over that.
• Over 700.000 Ft 2% entrepreneurial tax
• 4 % szolidaritasi tax
• Other taxes can apply based on the type of business (cultural fees)

The above circulations are only those payable to the government all other expenses: bills, rent, materials, accountant are extra cost.`