Compensatory support for the self - employed

As of 8 June 2021, self-employed persons who have been excluded from previous wage support are also entitled to claim a one-time wage subsidy of HUF 219,000 which is equal to the guaranteed minimum wage to compensate for the economic difficulties caused by the coronavirus epidemic.

For the purposes of this support, a self-employed person is a micro-enterprise and a self-employed person who did not have an employee during the period of the support.

On the basis of an application submitted to the district (capital district) office, a self-employed person whose main activity is one of the 56 areas of activity according to Annex I of the Government Decree on compensatory support for the self-employed.

These activities are typically the followings:

• retail, tourism, catering service,

• accommodation service or

• leisure sector activities (e.g.: hairdresser, beautician, driving instructor)

The self-employed person is included in the scope of support who was not entitled on certain economic protection measures during the emergency under Government Decree 485/2020 and does not qualify for support under Government Decree 485/2020. There who was not entitled to a tax allowance and do not have an employee.

The actual main activity is to be understood as the activity from which the beneficiary received most of its income, but at least 30 percent of its income in the six months preceding the entry into force of the Government Decree of 310/2021, i.e., 8 June 2021 or the Government Decree 485/2020., i.e., 11 November 2020. Thus, companies that may have made up for lost income by carrying out a new activity instead of their main activity due to the epidemic situation are not eligible for this support.

The applicant must undertake to comply with Government Decree 27/2021 that the enterprise will not be terminated or suspended for two months after the end of the emergency period.

An application may be submitted to the district (capital district) office according to the registered office or location of the self-employed until the end of the emergency period. The application form can be downloaded from the National Employment Service (Nemzeti Foglalkoztatási Szolgálat) website, which must be submitted electronically. Should you have any questions regarding the eligibility for the application or the submission of the application, please contact our tax advisors.

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The expert team of VGD Hungary is at your disposal in case of any questions related to the compensation support of the self-employed.