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Coronavirus - Tax relief and postponed deadlines - Hungary

  • Hungary
  • Coronavirus - Country overview
  • Coronavirus - Tax issues

23-04-2020

The government decided on the tax reliefs previously announced, postponing the deadlines in connection with the annual report to 30 September. The payment of health services contribution by the employer in relation to employees on unpaid leave has been temporarily introduced.

The deadline has been extended in relation with the annual and extraordinary tax assessment, declaration and payment obligations, as well as the tax advance assessment and declaration obligations due between 22 April 2020 and 30 September 2020, for the following types of taxes and contributions:

  • Corporate Tax („Tao.”)
  • Small Business Tax („KIVA”)
  • Income Tax of Energy Suppliers
  • Local Business Tax („IPA”)
  • Innovation Contribution

The amount of the tax and contribution advance, for which the return may be submitted by 30 September 2020, shall be determined by the taxpayer on the basis of the advance payment obligation. This is determined by the last available tax advance or contribution advance return, in the same schedule and paid by the applicable deadline.

From 1 July 2020, the rate of Social Contribution Tax will be reduced to 15.5%.

The tourist tax after the guest night spent in the period from 26 April 2020 to 31 December 2020 shall not be paid, collected and paid in, however, the tax established but not collected shall be declared. It is not necessary to declare the established tax if its amount is zero.

Tax administration facilitations

Taxpayers should not be disadvantaged in terms of taxpayer ratings because of taxation defaults whatsoever due to the emergency.

The Tax Authority, at the request of the taxpayer, grants deferred payment or payment of instalments for a tax not exceeding HUF 5 million, if the applicant, when submitting the application, proves or it is probable that the payment difficulty can be traced back to the emergency situation.

At the request of the taxpayer, the Tax Authority reduces the tax debt by a maximum of 20%, but not exceeding HUF 5 million, if the payment of the tax debt would make the applicant's economic activity impossible due to a cause attributable to the emergency. The tax reduction can only be applied for once and for one type of tax.

Applications may be submitted until the 30th day after the end of the emergency.

The Electronic Trade and Transport Control System (in Hungarian abbreviated as „EKAER”) has introduced a guarantee waiver and automatic repayment.

The deadline for annual servicing of cash registers is extended by 120 days from the end of the emergency.

Facilitation of reporting obligations

The deadlines for the preparation, disclosure, deposit, publication, and submission of annual reports under the Accounting Act are extended until 30 September 2020, if they are due between 22 April 2020 and 30 September 2020. The deadline for additional accounting obligations shall be calculated from that date.

Payment of health services contribution by the employer

From 1 May 2020, for employees on unpaid leave due to the emergency, the employers have to assess, declare and pay a health services contribution until the 12th day of the month following the month in question.

At the request of the employer, the tax authority allows the amount of the health services contribution to be paid by the employer until the 60th day after the end of the emergency.