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Hungary-Enterprise Income Regulation

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Hungary Index

In addition to price and wage regulation and taxation, the Hungarian government controlled enterprise incomes by prescribing the means by which enterprises calculated revenues and expenses and apportioned earnings. Taxes on inputs and profits were levied at several steps in the sequence of computations. In 1985 the authorities abolished rules requiring enterprises to allocate after-tax profits to various wage and development funds, but in the late 1980s the government still used tax rules and other devices to influence enterprise distribution of after-tax profits.

Data as of September 1989

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