Further Measures In Taxation

Finance Minister Mr. Varga announced new government decisions related to the Covid-19 emergency.

  • Together with the financial statements, the deadline to pay the yearly corporate income tax is also postponed to 30 September. Note: it is important that companies can claim to reduce the CIT advance payments during the year if they see that this year’s results will be lower than last year.
  • Companies hit by the crisis can claim a tax reduction or 6 to 12-month installment payment without any surcharge for up to HUF 5 million.
  • KIVA tax for SMEs drop from 12 to 11 percent from January 2021.
  • The most poplular fringe benefit, SZÉP card will be cheaper for employers: The benefits paid to SZÉP cards are free of social contribution tax until end of June dropping its tax burden from 32.5% to 15%.
  • The yearly limit paid to SZÉP cards is increased from HUF 450,000 to HUF 800,000. This is important to promote domestic tourism after the emergency.

We will share the official text of the decrees when they are published.
Follow our news for updates and contact us for further information.

Recent Posts

August 13, 2024

Common VAT Mistakes in Hungary in 2024 (and how to Avoid Them)

Value added tax (VAT) is a tax that applies to most products and services bought and sold in the European Union (EU). While standard rules…

Continue reading
July 11, 2024

New fining rules for all companies

The Hungarian government has issued a new decree doubling the fines that the tax authority (NAV) can impose. The decree was introduced in reference to…

Continue reading
April 29, 2024

Cross-border Payroll in Hungary

We receive more and more inquiries from foreign companies regarding the various possibilities of employment in Hungary. It is also common for a foreign worker…

Continue reading