Tax measures to support economic relaunch

In our current newsletter, we describe the measures announced in June in order to further mitigate the consequences of the COVID epidemic.

Tax administration rules

In 2021 only once, a surcharge free payment facility can be requested for a tax debt of up to HUF 5 million. The National Tax and Customs Authority will allow a deferral of up to 6 months or a 12-month instalment if the payment difficulty was due to the Covid situation.

The new amendment is expanding the circle of those beneficiaries who can apply for these tax reductions: regarding only one type of tax – also referring to the state of emergency – non-private individuals may also request a reduction until 31 December 2021. The maximum amount of tax reduction is 20% of the tax debt but may not exceed HUF 5 million.

Taxpayer can opt for only one of the above-mentioned measures: payment facility or tax reduction.

Reduction of public duties in the tourism sector

The amendment extends the exemption from the tourism development contribution to the whole year of 2021.

Changes affecting the Széchenyi Pihenő Card (SZÉP card)

The deadline for applying several previously announced favourable amendments connected to SZÉP card was extended by the end of the year. As a result, the previously increased – up to a total of HUF 800,000 per year – budget can now be granted until the end of the year, the employer also does not have to pay social contribution tax after this amount and by paying with SZÉP card, the “pockets” (accommodation, restaurant services and leisure subaccounts) will remain freely interoperable until 31 December.

Further favourable changes concerning the social contribution tax

Entertainment expenses and business gifts incurred between 11 June and 31 December are not subject to social contribution tax.

In connection with employees entering the labour market – after whom taxpayer is entitled to social contribution tax allowance -, if the employment relationship started between 11 June and 31 December 2021, the period to be examined is shortened from the previous 275 days to 183 days, within which the employee could have previously been insured for a maximum of 92 days.

If you have any questions regarding the above, please feel free to contact us.

Krisztián Vadkerti, partner
Regina Kőrös, senior tax advisor
Katalin Volpert, junior tax advisor

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