How to calculate profit before tax from a long-term apartment lease?
napi.hu, 13.09.2016 – There are two ways to calculate profit before tax from a long-term apartment lease. First, the landlord can deduct every verifiable cost item (cost of utilities, renewal expenses etc.) and depreciation from the revenue earned.
Second, the landlord can deduct a flat-rate 10 per cent cost ratio from the revenue earned. A tax advance shall be paid on a quarterly basis and the revenues shall be entered into the tax return under “revenue earned from non-employment activities”. The tax rate is 15 per cent. If in any tax year a private person’s revenue earned from property rental exceeds HUF 1 million, then 14 per cent social security contribution must also be paid.