Hungary

Value Added Tax

  •  N/A

Corporate Income Tax

  •  N/A

Social Security Contributions or Payroll Tax

For the period between March and June 2020 inclusively, employers and entrepreneurs under the general tax scheme operating in the most hardly hit sectors (are entitled to the following benefits:

  • exemption from paying social security taxes for employees and for the personal activities of entrepreneurs.
  • training contributions are also exempted and the annual rehabilitation contribution liability is proportionally decreased to exclude these months.
  • social security contributions payable by employees and entrepreneurs are reduced to 4% healthcare contribution payable for healthcare services and cannot exceed HUF 7,710 a month.

KIVA taxpayers in the endangered sectors are also released from their obligation to pay KIVA on payroll payments made to individuals contributing to their activity.

The list of industries considered to be hardest hit by the outbreak is defined according to the NACE 2 classification system of activities recognised across the EU and now includes: 

  • Taxi operation
  • Accommodation
  • Food and beverage service activities
  • Creative, arts and entertainment activities
  • Sports activities and amusement and recreation activities
  • Gambling and betting activities
  • Motion picture, video and television programme production, sound recording and music publishing activities
  • Organisation of conventions and trade shows
  • Publishing of newspapers
  • Publishing of journals and periodicals
  • Programming and broadcasting activities

Other relief measures

  • To provide general relief for all companies, tax enforcement procedures in progress as of 24 March 2020 are suspended until 16 days after the state of emergency has ended. The legislation, however, does not seem to contain any relief from tax enforcement procedures that would start after March 24.
  • The 4% tourism tax applicable for accommodation services does not nee to be paid for the March-June period. 
  • Small taxpayers under the KATA scheme operating in certain freelancing type jobs are exempted from their KATA tax payment liability for the March-June period.

Additional comments

  • A statutory payment moratorium has been introduced on all corporate and residential loans as well as financial leasing payments. The moratorium lasts until 31 December 2020.