Old-age pensions are tax-free in Hungary and are likely to remain so after new legislation that was recently passed. The new law overrides a 1997 Act of Parliament that would have made it possible to impose personal income tax on pensions as of 2013. In the 1997 act, the gross pension amounts would have been calculated on the basis of citizens’ gross income during their active working years. This was made redundant with last year’s large-scale transfer of private pension assets to the state pension fund.
