Local business tax (LBT) can be halved for 2021 for all small and medium-sized enterprises (SME).
A recent measure of the government related to the pandemic is about the LBT. LBT is a locally regulated tax, and it is up to 2% of the gross profit of the companies. The new government decree (639/2020 and 640/2020) limited the LBT to 1% for 2021 where it is normally more than 1%. It applies to all companies below yearly net revenue or balance sheet sum of HUF 4 billion. Most municipalities apply 1.8% or 2%, while some of them do not levy this tax usually to attract companies to their village. The advance payments due in 2021 are to be halved by the local tax authorities.
There is a condition to receive this tax discount. The companies must declare that they are entitled to receive it on a form submitted to the tax authority (NAV) before 25 February 2021.
For further information, contact or check the official gazette here.
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