Good news for families!

The decree on the refund of PIT has been issued

On 30 September 2021, the detailed rules for the PIT refund for families were published in the form of a government decree.

Unlike our previous newsletter, families earning above average earnings may receive a higher refund than previously expected.

Under the Regulation, the refund can be taken into account up to the amount of PIT paid less the tax credit. The maximum amount of the refund is no more than twelve times the paid PIT after the average gross monthly earnings (HUF 449,400) of the national economy level published by the Central Statistical Office for full-time employees for the month of December 2020 rounded to the nearest thousand forints. Based on this, the maximum refund per capita is HUF 809.000.

The table below summarizes the income level at which the family will be entitled to the maximum refund:

Please also note that the family is entitled to the maximum refund only if the annual income of both family members is above average. As a result, in case one party earns more than the average, but the other party’s income does not reach average earnings, unfortunately they will not receive the maximum refund.

It is important that by 31 December 2021, entitlement to the benefit must be declared to the tax authority electronically or on paper on a form provided for that purpose.

In the absence of this declaration, it will be possible to claim this refund in the 2021 tax return.

Budapest, 1 October, 2021

The expert team of VGD Hungary is at your disposal in case of any questions.

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