Allowances will remain in place in April

In April 2021, the benefits for companies operating in vulnerable economic sectors due to the COVID situation will remain in force.

Companies who are actually engaged in the main activity in the vulnerable sector are exempt from paying social security contributions and vocational training contributions for their employees. The preferential rule also applies to sole proprietorships and partnerships operating in the same sectors.

The main activity shall be the activity from which the payer, the small business taxpayer, received the most revenue, but at least 30 per cent of its revenue, in the six months preceding 11 November 2020.

In addition, companies belonging to vulnerable sectors who are obliged to pay a rehabilitation contribution will be exempted from the rehabilitation contribution in proportion to April 2021.

These rules also apply to small business taxpayers (kiva) carrying out activities in the listed vulnerable sectors as their main activity, they do not have to take into account the amount of personal payments when determining their April 2021 liability, so it will not be part of the small business tax base.

The benefit of KATA tax payer has also been extended, and by April 2021, a KATA taxpayer engaged in the main activity in the vulnerable sector will not have to pay the itemized tax on full-time and non-full-time taxpayers. The discount is determined by NAV without an application.

The full list of those in vulnerable economic sector can be found on the NAV website:

(https://www.nav.gov.hu/nav/segitseg_rendkivuli_helyzetben/adozasi_konnyitesek/Marciusra_nem_kell_ka20210312.html ) and in Government Decree no. 105/2021.