Extension of the restrictions on cereals exports,
special tax provisions for small petrol stations

In our today's newsletter we summarised some of the
Hungarian governmental measures taken in response to the turbulent economic environment.

Extension of restrictions on cereals exports to other products

In our previous newsletter we wrote about the notification obligation introduced by the Hungarian Government for the export from Hungary of raw materials and products of strategic importance for feed or food security.

With effect from 13 March 2022, the scope of products subject to the notification obligation has been extended and clarified as follows:

Special provisions for small petrol stations

The following provisions were adopted by Government Decree 84/2022 (5.III.) in order to guarantee security of supply for small petrol stations in rural areas:

• The tax liability for the months of February, March, April, May and June 2022 is reduced by the social contribution tax assessed on the taxable income of the private individuals employed at the petrol station (up to a maximum of 4 persons per service station);
• the employer operating the petrol station is exempted from the obligation to pay the rehabilitation contribution pro rata for five months in 2022. In addition, the employer is not liable to pay the rehabilitation contribution advances for the 1st and 2nd quarters of 2022;

• The taxpayers under the small business tax scheme (KIVA) operating petrol stations should exclude from their KIVA base - for the months of February, March, April, May and June 2022 - the amount of personnel costs for up to 4 individuals employed at the petrol station;
• Additional reliefs apply to the rental fee of petrol stations located in premises owned by the State or local municipalities and to the energy saving obligation imposed by the MEKH (Hungarian Energy and Public Utility Regulatory Authority).

The tax reliefs detailed above constitute State aid, which should be treated as COVID19 transitional aid.

24 March, 2022

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Should you have any questions regarding this newsletter,
the tax experts of VGD Hungary will be pleased to assist you.

This newsletter provides general information and does not constitute tax advice