Allowances remain in place in May
In May 2021, the tax allowances for businesses in vulnerable economic sectors will remain in place. However, for the month of May, only businesses most exposed to the COVID-19 pandemic will be able to benefit from them.
Employers who effectively carry out their main activity in one of the vulnerable sectors will not be required to pay social contribution tax on employees in employment for May 2021, nor will they be required to pay vocational training contribution in May. In addition, such employers will be exempt from the five-month pro rata rehabilitation contribution in 2021.
Small business taxpayers who effectively carry out their main activity in vulnerable sectors will not have to take into account the amount of personnel costs when assessing their KIVA liability in May 2021 (that is, it should not be part of the KIVA base).
However, the payers of the fixed-rate tax of low-bracket enterprises (“KATA”) will no longer qualify for the KATA exemption for May 2021, therefore, the May KATA will have to be paid.
The full list of activities in scope of the vulnerable economic sectors eligible for allowances after 30 April 2021 can be found on the HTA website (the Hungarian language version showing the eligible NACE codes):
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Should you have any questions as regards the remaining tax allowances related to the COVID-19 pandemic, the tax experts of VGD Hungary will be pleased to assist you.
This newsletter provides general information and does not constitute tax advice.
