On March 23, 2020, Decree no. 61/2020 (III. 23.) on the measures necessary to mitigate the impact of the coronavirus on the economy was published in Hungary. The decree specifies the taxpayers eligible for tax and contribution relief. This Regulation entered into force on the day following that of its publication, ie on 24 March 2020.
The facilitations shall be applied to those performing their principal activity identified by the following NACE Rev2 numbers:
- Taxi operation (NACE Rev2: 49.32),
- Accommodation services (NACE Rev2: 55),
- Food and beverage service activities (NACE Rev2: 56),
- Creative, arts and entertainment activities (NACE Rev2: 90),
- Sports activities, amusement and recreation activities (NACE Rev2: 93),
- Gambling and betting activities (NACE Rev2: 92),
- Motion picture, video and television program production, sound recording and music publishing activities (NACE Rev2: 59),
- Organization of conventions and trade shows (NACE Rev2: 82.30),
- Publishing of newspapers (NACE Rev2: 58.13),
- Publishing of journals and periodicals (NACE Rev2: 58.14) and
- Programming and broadcasting activities (NACE Rev2: 60).
For the purposes of this Regulation, “principal activity” means the activity that resulted the highest revenue of the activities, but at least 30%, of the taxpayer’s income in the six months preceding the entry into force of the Regulation.
Companies which carry out the above activities as their principal activity receive the following tax and contribution benefits:
- Social security contribution is not payable for the months of March, April, May and June 2020.
- Only the 4% in-kind health insurance contribution is payable by the employees, and the payable monthly amount may not exceed the monthly health care contribution of HUF 7,710 in March, April, May, and June 2020.
- Contribution to vocational training is not payable for the months of March, April, May and June 2020.
- For those liable to pay the rehabilitation contribution, the amount of the rehabilitation contribution is reduced, and only two thirds of the required contribution is payable.
- Personnel costs are not considered as tax base for small business tax in the months of March, April, May, and June 2020.
Facilitations for KATA (small taxpayers’ itemized lump sum tax) tax payers
Partial tax and contribution exemptions are granted to certain KATA tax payers (the exact activities are defined by the TEÁOR codes in the Regulation).
- KATA tax payers are exempted from paying KATA in the months of March, April, May and June 2020.
- The above exemption however does not affect the entitlement to social security benefits and the amount of the benefits.