World Bank2012-06-142012-06-142008-05https://hdl.handle.net/10986/8115Undeclared work and incomes are a serious concern for the Government of Hungary, primarily because of the negative consequences for the country's already difficult fiscal situation. The Government has already introduced a number of reforms intended to reduce undeclared economic activity. Much of the effort to this point has focused on strengthening the "stick" through enforcement and sanctions. A successful strategy to combat the undeclared economy also requires more effective "carrots" that improve the incentives to operate in the formal sector. The most important measures will involve reforms to lighten the tax burden, especially on labor. Public information and education is the final element in a strategy to move Hungary to the "tipping point" in the struggle against the undeclared economy.CC BY 3.0 IGOACCOUNTINGADMINISTRATIVE BURDENAUDITSAVERAGE WAGEAWARENESS CAMPAIGNBANKING SYSTEMBARRIERBARRIER TO ENTRYBARRIERS TO ENTRYBENEFICIARIESBEST PRACTICEBROCHUREBUDGETINGBUSINESS ENVIRONMENTBUSINESS INVESTMENTBUSINESS REGULATIONSBUSINESS TAXCASH PAYMENTCASH PAYMENTSCONSUMERCONSUMERSCONSUMPTION TAXESCONTRIBUTIONCONTRIBUTION SYSTEMCONTRIBUTION SYSTEMSCONTRIBUTIONSCORPORATE TAXCREDIBILITYCURRENT ACCOUNTCURRENT ACCOUNT DEFICITSDEBTDEBT BURDENDEFINED BENEFIT PENSIONDEFINED-BENEFIT PENSIONDEFINED-CONTRIBUTION PENSIONDEREGULATIONDISABILITYDISPOSABLE INCOMEDISPOSABLE INCOMESDOCUMENTATION REQUIREMENTSEARLY RETIREMENTEARNINGSECONOMIC ACTIVITYECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC PERFORMANCEELECTRICITYELECTRONIC REGISTRATIONEMPLOYER CONTRIBUTIONSENFORCEMENT MECHANISMSENTERPRISE PERFORMANCEESTATE TAXEXCLUSIONEXPENDITUREFINANCESFINANCIAL CONSEQUENCESFINANCIAL DIFFICULTIESFINANCIAL DISADVANTAGESFINANCIAL INSTABILITYFINANCIAL SITUATIONFISCAL CONSOLIDATIONFISCAL DEFICITFISCAL POSITIONFLAT TAXESFRAUDGOVERNMENT EXPENDITURESGOVERNMENT INVESTMENTGOVERNMENT REGULATIONGOVERNMENT REVENUEGOVERNMENT SPENDINGGROSS REVENUESHEALTH INSURANCEHOUSINGHOUSING AUTHORITYHUMAN DEVELOPMENTHUMAN RESOURCESINCOMEINCOME LEVELINCOME TAXINCOME TAXESINCOME ~~~ ~ SOURCEINCOMESINFORMAL ECONOMIESINFORMAL ECONOMYINFORMATION CAMPAIGNINFORMATION CAMPAIGNSINPUT TAXINSTITUTION BUILDINGINSTRUMENTINTEREST RATESINTERNATIONAL BEST PRACTICEJOB CREATIONJOB LOSSESJURISDICTIONLABOR FORCELABOR MARKETLARGE BUSINESSLARGE FIRMSLAW ENFORCEMENTLEGAL PROTECTIONLIABILITYLIBERALIZATIONLICENSESLIMITED LIABILITYLIMITED LIABILITY COMPANYLIVING STANDARDSLOCAL GOVERNMENTSLOCAL TAXESLOW-INCOMEMARGINAL RATEMARGINAL RATESMARGINAL TAX RATEMARGINAL TAX RATESMARKET CONDITIONSMARKET FAILURESMARKET REGULATIONMARKET REGULATIONSMINIMUM CAPITAL REQUIREMENTMINIMUM CAPITAL REQUIREMENTSMINIMUM WAGEMINIMUM WAGESMODERN BANKINGNOTARIESPENSIONPENSION BENEFITSPENSION SYSTEMPENSIONERPENSIONSPERSONAL INCOMEPERSONAL INCOME TAXPERSONAL INCOME TAXESPREMIUM PAYMENTSPRIVATE SECTORPRODUCTIVITYPUBLICPUBLIC CAMPAIGNSPUBLIC EMPLOYMENTPUBLIC EXPENDITURESPUBLIC FINANCEPUBLIC FINANCESPUBLIC GOODSPUBLIC INFORMATIONPUBLIC POLICIESPUBLIC PROCUREMENTPUBLIC SPENDINGPURCHASING POWERREAL ESTATEREAL INTERESTREAL INTEREST RATESREGISTRATION FEESREGISTRATION PROCESSESREGISTRY OFFICEREGISTRY OFFICESREGULATORY BARRIERSREGULATORY ENVIRONMENTREGULATORY REQUIREMENTSRESPONSIBILITIESRETIREMENTRETIREMENT AGERETIREMENT PENSIONRETURNREVENUE SOURCESSAFETY NETSALESSAVINGSSELF-EMPLOYMENTSINGLE TAXPAYERSKILLED WORKERSSMALL BUSINESSSOCIAL ASSISTANCESOCIAL INSURANCESOCIAL INSURANCE SYSTEMSSOCIAL PROTECTIONSOCIAL SECURITYSOCIAL SECURITY CONTRIBUTIONSSOCIAL WELFARESTAMP DUTIESSTAMP DUTYSTATE GUARANTEESSTUDENT LOANSTAX ADMINISTRATIONTAX AUDITSTAX AVOIDANCETAX BASETAX BURDENSTAX COLLECTIONTAX CONCESSIONSTAX CREDITTAX CREDITSTAX CUTSTAX ENFORCEMENTTAX EVASIONTAX INCREASESTAX LIABILITIESTAX POLICYTAX RATETAX RATESTAX RECEIPTSTAX REFORMTAX REFORMSTAX REGIMETAX REVENUETAX REVENUESTAX SYSTEMTAX SYSTEMSTAX TREATMENTTAX TREATMENTSTAX WEDGETAX WEDGESTAXABLE INCOMETAXATIONTAXPAYER SERVICESTAXPAYERSTRANSACTIONTRANSACTION COSTSTRANSITION COUNTRIESTRANSPARENCYUNEMPLOYEDUNEMPLOYMENTUNEMPLOYMENT BENEFITUNEMPLOYMENT BENEFITSUNSKILLED WORKERUNSKILLED WORKERSUTILITIESVOLATILITYWAGEWAGE COSTSWAGESWAREHOUSEWITHDRAWALYOUNG PEOPLEWorld Bank10.1596/8115