TAXCONTOR NEWSLETTER 2021/05

Taxation changes and reliefs

1. Change in tax rate

Social contribution tax: Social contribution tax rate will be decreased from 15,5% to 15% from July 1, 2022, while the 1.5% vocational training contribution will be abolished. It means that the employment tax rate will be reduced by a total of two percentage points.

Discounted VAT rate: In the emergency phase introduced decreased VAT rate for food and beverages delivery can be applied until 31/07/2021.

2. Changes in the taxation of personal benefits

The social contribution tax exemption after the fringe benefit referring to SZÉP Card, has been extended until the end of 2021.

An increased amount can be expected in 2021 as follows:

• a) the subsidy transferred to the accommodation sub-account does not exceed HUF 400,000 per year,
• b) support transferred to the hospitality sub-account up to HUF 265 thousand per year,
• c) the subsidy referred to the leisure sub-account does not exceed HUF 135,000 per year.

It is also an important facilitation that the provision of entertainment and business gifts does not require the payment of social security tax in the period between 10/06/2021 and 31/12/2021.

3. Subsidies for salaries

The wage subsidy for young jobseekers under the age of 25 has been extended to jobseekers registered for at least 1 month. The disbursement period can be a fixed 6 months. The rate of the subsidy is 50% of the wage cost (gross wage and social contribution tax actually transferred) charged to the employer, but in the case of full-time employment it does not exceed HUF 100,000 per month. You can find out more about the conditions of the subsidies at the following link: https://nfsz.munka.hu/cikk/1268/Vallalkozasok_munkaero_tamogatasa

4. New Corporate Tax Base Discount

From the point of view of corporate tax, a new tax base benefit is that it reduces the pre-tax profit of the book value of a grant, benefit or gratuity transferred to a public-interest trust or a university or its maintainer by 300% of the cost of the service. The previous reduction items can still be used, such as 20% of the given support in the case of a non-profit organization, 50% of the given support in the case of the Hungarian Damage Rescue Fund, the National Cultural Fund, and the Damage Mitigation Fund.

5. Tax debt reduction, payment discount

Reduction of tax debt: can be demanded on one occasion, by a maximum of 20%, but not more than in the amount of HUF 5 million, submitted until 31 December 2021, if the payment of the tax debt would make the taxpayer’s economic situation impossible due to the COVID emergency.

Payment discount: can be demanded for a tax of up to HUF 5 million registered by the tax authority, submitted until 31 December 2021, granting a deferred payment of up to six months without payment or payment of instalments of up to twelve months if payment difficulty can be traced back to the COVID emergency.

It is not possible to claim the two facilitation possibilities at the same time.

6. Relaunching the tourism sector

The facilitation discounts of the tourism sector has been extended until 31/12/2021:

• The tourism development contribution does not have to be established, declared and paid for the period from 01/01/2021 to 31/12/2021;
• However, the tourist tax does not have to be paid only for the period up to 30/06/2021, after which it has to be collected and paid again.