> ## Documentation Index
> Fetch the complete documentation index at: https://docs.penzum.app/llms.txt
> Use this file to discover all available pages before exploring further.

# Choosing a tax form

> Flat-rate tax, KATA, and VSZJA — which one to choose?

Penzum supports three sole-trader tax forms: **flat-rate tax (átalányadó)**, **KATA**, and **itemised entrepreneurial income tax (vállalkozói SZJA / VSZJA)**.

## Flat-rate tax (átalányadó)

Under flat-rate tax, a statutory cost-ratio percentage is deducted from your revenue — the remainder is your tax base, which is then taxed. Penzum handles all three cost-ratio categories (45%, 80%, 90%); which one applies to you should be confirmed with your accountant or NAV records.

**Key features:**

* Annual revenue ceiling (VAT-exemption threshold)
* Monthly/quarterly contribution payments
* Personal income tax (SZJA), social security contribution (TB), and social contribution tax (szocho)

## KATA

The itemised tax for small businesses (KATA) is a fixed monthly tax burden — independent of actual revenue, up to a set annual revenue ceiling.

<Info>
  KATA can only be selected for **full-time** sole traders in Penzum.
</Info>

**Key features:**

* Fixed monthly tax amount
* Annual revenue ceiling (a different tax form is required above it)
* Simpler administration

## Itemised entrepreneurial income tax (VSZJA)

VSZJA is based on itemised cost accounting — you deduct your actual, receipt-verified costs from revenue, rather than a fixed cost ratio. This requires you to keep your own records:

* **[Withdrawal Log](/en/withdrawal-log)** — monthly recording of amounts you pay out to yourself from the business
* **[Fixed Assets](/en/fixed-assets)** — asset purchases over HUF 200,000 and their depreciation
* **[Cash Book](/en/cash-book)** — mandatory under VSZJA if you have any cash income or expenses; Penzum turns it on automatically

## Which one should I choose?

<Warning>
  Choosing a tax form depends on statutory conditions. Penzum does not advise on switching tax forms — always confirm with your accountant.
</Warning>

The [Scenario analysis](/en/calculator) feature lets you see how your tax burden would look under different tax forms — but make the final decision with a professional.