Important SZÉP card deadline expires on May 31!
We would like to draw your attention to the fact that according to the new regulations, all amounts transferred to the SZÉP card by October 15, 2022 can be spent free of charge until May 31, 2023.
The service provider will charge a 15% fee for the unspent amounts, so the remaining 85% can be used freely, no additional fee will be charged in the future. This only applies to the SZÉP card benefits that the employer transferred to the employees' SZÉP card until October 15, 2022.
As a general rule, amounts transferred to this SZÉP card can be spent free of charge for one year from the date of transfer, and unused amounts are subject to a fee of 15% (but at least HUF 100) after one year. It is important to know that, according to the new regulations, fees will only be charged twice a year (March 20 and September 20).
In view of the fact that some sub-accounts of the SZÉP card have been cancelled from January 1, 2023, the SZÉP card benefit can be provided to employees without naming the affected sub-account, and the accumulated amounts can already be used widely (accommodation, meals, recreation).
From 2023, the entire recreation amount of HUF 450,000 will be taxed as an extra-wage benefit, the amount does not need to be distributed between sub-accounts, so employees receiving a high amount of SZÉP card benefits can manage with a higher net amount, at the same time, if they miss the one-year deadline, they will have less net spendable income remains.
Therefore, we recommend that those who still have such unspent amount try to use it now, for example, to book a summer vacation, for a restaurant gift card that can be used later, for festival tickets, for summer theatre performances, or even beach tickets that can be redeemed in advance.
By introducing the new regulations, the legislator aims to encourage employees to spend the amounts on the SZÉP card. The service providers sent an information letter to those concerned about the unspent amounts.
24 May, 2023
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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.
