2021 year-end deadlines in Hungarian taxation

In our newsletter, we would like to draw your attention to the most important year-end taxation deadlines in 2021.

Below table summarises the year-end deadlines and returns. 

Most of the deadlines are cut-off dates for the taxpayers to exercise their right to certain options, meaning that if the deadline has lapsed, a taxpayer will have to wait for up to a year to become eligible for these options again. Furthermore, it is worth noting that a default penalty is attached to the most of the indicated deadlines, i.e. the taxpayer may be fined for the delay.

The novelty of year 2021 was the introduction of a reduced local business tax rate of 1% for a specific segment of small and medium-sized enterprises. Importantly, businesses that qualify for the reduced rate should submit a declaration to the relevant municipality by 25 February 2022 in order to obtain a 50% reduction of the advance payment for the 2022 tax year. Also, by 25 February 2022, the eligible businesses should submit a declaration if they opt for the treatment as a COVID19 transitional aid for the tax year ending in 2022 (failing to do so should result in the treatment as de minimis). By the same deadline, all permanent establishments not declared or established in the meantime must be declared electronically to the HTA (the “NAV”).

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Should you have any questions as regards the above deadlines or the indicated options, the tax experts of VGD Hungary will be pleased to assist you.

This newsletter provides general information and does not constitute tax advice.