I received a letter from the city council informing me that I have to pay the local business tax — a total of 50,000 Hungarian Forints. Honestly, this is the last thing I need right now. To make matters worse, I don’t even understand why I got this notice. I haven’t been under the KATA tax system (a special tax system for private business in Hungary) for a while, yet I still received this letter.
I called my accountant right away, and she explained that KATA and the local business tax are not directly connected — the latter is imposed by the municipality. When I heard that, I told her we should figure something out, since I’m no longer running a business.
It turns out that municipalities offer a form you can fill out and submit with a written explanation, and in some cases, they might reduce or even waive the tax. We both got motivated and started filling out the application, hoping they’ll exempt me from the payment.
As if we didn’t already have enough expenses — there’s always something new coming our way.