Hungarian Government measures to support refugees fleeing the armed conflict in Ukraine
Below we summarised the tax related measures introduced by the Hungarian Government to support the accommodation and employment of refugees.
Tourism tax
Pursuant to Government Decree 87/2022 (7.III.), from 24 February 2022, providers of accommodation to refugees do not have to collect and pay tourism tax for individuals who arrived from Ukraine on or after 24 February 2022 and who were legally resident in Ukraine before their arrival in Hungary.
Employment aid
Eligibility criteria
Pursuant to Government Decrees 96/2022 (10.III.) and 109/2022 (12.III.), Hungary will provide aid to employers for the employment in Hungary of persons with Ukrainian citizenship or Ukrainian-Hungarian dual citizenship (hereinafter jointly referred to as „Ukrainian citizens”) who arrived in Hungary from Ukraine on or after 24 February 2022, provided that:
- the employer employs the Ukrainian citizen as an employee on or after 24 February 2022;
- the employee is employed in Hungary (and has not been employed in Hungary for more than 90 days in the 365 days preceding the date of application);
- the employment is for a fixed or indefinite period of at least 20 hours per week, and
- the employer has regular labour relations (within the meaning of relevant labour law regulations) and no proceedings for its termination are pending.
To be eligible, an employer must be a company with its registered seat, place of business or branch in Hungary.
Form of the aid
The amount of the aid per employee is 50% of the employee's housing and travel expenses per month, up to a maximum of HUF 60,000 per employee and HUF 12,000 per minor child living in the same household as the employee.
The part of the accommodation and travel costs not covered by the allowance is shared 50/50 between the employer and the employee. The allowance cannot be paid during the employee's unpaid leave. The allowance is not subject to tax, contributions or other public charges.
The allowance is paid monthly in arrears to the employer, who must use it to cover the employee's housing and travel costs.
How to apply for the aid
The aid can be granted on application by the employer, who must submit the application electronically to the government office regionally responsible for the place of employment. The application form is published on the National Employment Service's website. The government office has 8 days to take a decision.
Duration of the aid
The aid is granted for the period following the conclusion of the employment contract, after the application has been submitted, and for the duration of the employment relationship, up to a maximum of 12 months. At the end of the 12-month period, the aid may be extended once, at the employer's request, for a further period of 12 months, up to a maximum of the duration of the employment relationship.
Other liabilities
By applying for the aid, the employer undertakes to provide accommodation for the employee and his or her minor child in suitable conditions and to ensure organised travel to work for the duration of the employee's employment.
17 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
