1. Sector-specific tax / contribution relief for March to June 2020
The tax relief sectors mentioned in our previous spot have been defined and expanded more precisely. Consequently, the tax reliefs are available for taxpayers whos main activity (to be determined as income generated for the entity at least 30% in the last 6 months) is one of the followings:
- taxi or passenger transport;
- accommodation;
- catering;
- organization of conferences, trade shows;
- creative, artistic, entertainment activities;
- production of films, videos, television programs, sound recording publishing;
- programming, broadcasting;
- sports, entertainment and leisure activities;
- gambling, betting;
- daily newspapers; or
- publication of journals and periodicals.
On the one hand, employers get significant enlightings, such as the social contribution tax payment obligation (17.50%) is suspended and the training contribution (1.5%) is exempted. Moreover, the obligation to pay the rehabilitation contribution is also reduced to THUF 966 per person and year (approx. EUR 2,700), which is only the 2/3 amount of the original rate of THUF 1,449. Besides, no advance payment is required.
On the other side, employees get reliefs too, as only the health insurance contribution in kind (4%) to be capped at HUF 7,710 (approx. EUR 20) per month remains deductible from the income of individuals. Resulting in a minimum of 14.5% increase of net salaries, while they remain insured and be entitled to social security and labour market benefits.
For the period of March to June 2020, small businesses (KIVA subjects) with the above listed main activity will also get exemption from KIVA tax.
2. Itemized Small Business Tax (KATA)
Exemption from KATA payments for March to June 2020
The other type of small taxpayers are also granted with exemption from KATA tax payment obligation (i.e. monthly itemized amount of HUF 50,000 (approx. EUR 140)) for the period of March to June 2020. The exemption applies to those who already covered by KATA in February 2020. This is also available only for the selected sectors e.g. taxi or passenger transportation, hairdressing, beauty care, construction-related activities (such as electrical installation, painting, glazing, water, gas, heating, air conditioning), performing arts, human health services, event organization, hospitality, sports, leisure training, gambling, betting.
Suspension of Tax Debt - Instalment Payments
The above KATA-subjects also benefit from 10-monthly instalment payments for their potential debts ac-cumulated during the emergency situation.
3. Childcare fee / Childcare allowance / Parenting allowance
The entitlement to health insurance and family benefits in respect of the care and education of the child shall be extended until the end of the emergency situation. In fact, the Childcare fee (Gyed), the Childcare allowance (Gyes) and the Parenting allowance (Gyet) entitlements expiring during the emergency situation will be extended.
4. Lending - banking sector
Debt moratorium
With respect to the credit moratorium announced, the outstanding debt cannot be either during the debt moratorium or afterwards increased by interest. The interest, which is not paid during the moratorium, shall be payable in equal annual instalments after the term of the moratorium, together with any instalments otherwise due.
Growth Loan Program
With respect to the Growth Loan Program (NHP), the Hungarian National Bank (MNB) has decided to announce a moratorium on repayment of loans under the respective program already on 18 March 2020, allowing the banks to restructure NHP loans granted to small and medium-sized enterprises by way of rescheduling repayments.
5. Hungarian Tax Authority (NAV) - communication
In the last days, the Hungarian Tax Authority has published several announcements, focusing on corporate and individual solvency related procedures, including, of course, the fulfilment of tax obligations. In the lack of special measures, still deferred and installment payments may be specifically claimed under the general rules by the taxable persons.
Payment facilitation
Payment difficulties caused by the Corona-crisis is an objective circumstance not attributable to taxpayers. In this regard, the Hungarian Tax Authority may, upon request, allow automatically for deferral of payments or payment in instalments, either without additional charges (interest). If taxpayer is, due to solvency problems caused by the Corona-crisis, still unable to meet his obligations the taxpayer may request a new debt rescheduling.
Bankruptcy protection - Payment delay
During the payment delay, no proceedings can be, temporarily, instituted against the company. In addition the company shall be also exempt from payment claims and any legal consequences thereof. However, the payment delay does not result in exception for payroll taxes and contributions, value added tax and environmental product charge.
Tax enforcement
As of 24 March 2020, the actual enforcement proceedings pending before the Hungarian Tax Authority have been suspended until the 15. day after the emergency withdrawal. The suspension of enforcement shall not apply, inter alia, to the enforcement of claims for breach of mandatory epidemiological measures.
6. Extension of Paypass limitation
As from 15 April 2020 at the latest, the value limit of contactless payments (where no PIN is needed, PayPass acc. to Hungarian colloquial language) has been increased to HUF 15,000 (approx. EUR 40) from HUF 5,000.
In case you haven't read our previous article in this regard yet, please visit this.
LeitnerLeitner
Address: 1027 BUDAPEST, Kapás utca 6-12.
Telephone: +36 1 279 2930
Fax: +36 1 209 4874
Email: office@leitnerleitner.hu
Web: http://www.leitnerleitner.hu/
4. Lending - banking sector
Debt moratorium
With respect to the credit moratorium announced, the outstanding debt cannot be either during the debt moratorium or afterwards increased by interest. The interest, which is not paid during the moratorium, shall be payable in equal annual instalments after the term of the moratorium, together with any instalments otherwise due.
Growth Loan Program
With respect to the Growth Loan Program (NHP), the Hungarian National Bank (MNB) has decided to announce a moratorium on repayment of loans under the respective program already on 18 March 2020, allowing the banks to restructure NHP loans granted to small and medium-sized enterprises by way of rescheduling repayments.
5. Hungarian Tax Authority (NAV) - communication
In the last days, the Hungarian Tax Authority has published several announcements, focusing on corporate and individual solvency related procedures, including, of course, the fulfilment of tax obligations. In the lack of special measures, still deferred and installment payments may be specifically claimed under the general rules by the taxable persons.
Payment facilitation
Payment difficulties caused by the Corona-crisis is an objective circumstance not attributable to taxpayers. In this regard, the Hungarian Tax Authority may, upon request, allow automatically for deferral of payments or payment in instalments, either without additional charges (interest). If taxpayer is, due to solvency problems caused by the Corona-crisis, still unable to meet his obligations the taxpayer may request a new debt rescheduling.
Bankruptcy protection - Payment delay
During the payment delay, no proceedings can be, temporarily, instituted against the company. In addition the company shall be also exempt from payment claims and any legal consequences thereof. However, the payment delay does not result in exception for payroll taxes and contributions, value added tax and environmental product charge.
Tax enforcement
As of 24 March 2020, the actual enforcement proceedings pending before the Hungarian Tax Authority have been suspended until the 15. day after the emergency withdrawal. The suspension of enforcement shall not apply, inter alia, to the enforcement of claims for breach of mandatory epidemiological measures.
6. Extension of Paypass limitation
As from 15 April 2020 at the latest, the value limit of contactless payments (where no PIN is needed, PayPass acc. to Hungarian colloquial language) has been increased to HUF 15,000 (approx. EUR 40) from HUF 5,000.
In case you haven't read our previous article in this regard yet, please visit this.
LeitnerLeitner
Address: 1027 BUDAPEST, Kapás utca 6-12.
Telephone: +36 1 279 2930
Fax: +36 1 209 4874
Email: office@leitnerleitner.hu
Web: http://www.leitnerleitner.hu/
