The following overview addresses recent changes introduced this year so far.
Personal Income Tax
The refunds can be also claimed in the tax return, which must be submitted by 20 May 2022.
Other allowances (e.g., family allowance, allowance of first married couples, allowance for mother with four or more children, personal allowances, allowance for the young below the age of 25) must be claimed in the tax return. It is worth mentioning that both, the conditions and the amount of the consolidated tax base, must allow the claim.
Parallel to the extension of the price freeze, the “SZÉP Card” can be used for food purchases until 1 July 2022.
Corporate Income Tax
Development tax allowance for investments is available to small and medium sized enterprises, while for large companies, the allowance can be claimed outside Budapest only. This means a significantly wider applicability as before.
As from 2022, small and medium-sized enterprises are eligible for a higher development tax allowance for investments at a present value of HUF 50 million or HUF 100 million.
- The support is capped at 50 % in the regions of Pest County, Southern-Transdanubia, Northern-Hungary, Northern-Great-Plain and Southern-Great-Plain, while
- It might be capped at 30 % in the regions of Central- and Western Transdanubia regions.
In addition, small and medium-sized business can claim further an amount of 20 % and 10 % respectively.
The allowance constitutes a tax credit, which may reduce the corporate income of the following 13 years.
Entry into force: 21 March 2022
Tourism sector
According to Government Decree Nr 87/2022 which entries into force on 8th of March 2022, no tourist tax shall be paid by those individuals, who arrived in Hungary since 24 February 2022 and prior to their arrival, were legally reside in Ukraine.
Supporting the employment of Ukrainian refugees
Employers are eligible for financial support for employment of Ukrainian citizens or dual Ukrainian-Hungarian citizens. The eligibility is subject to the following conditions:
- Employment relationship has been concluded after 24 February 2022.
- The employee is employed in Hungary.
- The employment contract is either concluded for a defined or undefined period of time and provides for weekly worktime of 20 hours or more.
- The employer has well-settled labor law relations and is neither under liquidation nor under winding-up procedure.
The financial support can be claimed after execution of the employment contract for the period of the employment contract, but no longer than for 12 months.
The employer must spend the financial support to cover 50% of the housing and travel costs of the employee. There is a monthly maximum amount of HUF 60,000 with additional HUF 12,000 granted for one minor child in the same household.
The not-covered part of the housing and travel expenses must be shared in equal parts by the employer and the employee.
If both parents are employed by the same employer, only one is eligible to claim the additional allowance for the child.
Entry into force: 11 March 2022
