Personal income tax, social security
I. Personal income tax
Fuel price for the cost reimbursement purposes
The official price of CNG used as fuel will also be available in connection with the tax-deductible fuel cost reimbursement based on the consumption standard. Every month, by the 25th day of the month preceding the month in question, the Hungarian tax authority will publish in the Hungarian Gazette the fuel price applicable in the month in question to the fuel cost reimbursements.
Cost reimbursements related to hybrid and fully-electric vehicles
Due to the increasing number of these vehicles, the cost reimbursements related to their use have been regulated. From 1 October 2022, the following will become eligible cost with no need of supporting documents:
- for vehicles with pure electric propulsion, 3 litres per 100 km of unleaded petrol of EES 95 at the price published by the Hungarian tax authority;
- for chargeable hybrid vehicles, 70% of the fuel consumption standard determined by the government decree on the basis of the cylinder capacity of the internal combustion engine installed.
Tax exemption for waived debts
The tax exemption for receivables waived by banks and financial companies has been brought in line with the latest recommendations of the Hungarian National Bank.
The waiver of receivables arising from the provision of money loans and financial leasing contracts under the Act on Credit Institutions and Financial Enterprises is exempt from tax on other grounds if the claim is waived in the context of the debtor's restoration of solvency on the basis of MNB Recommendation No. 5/2022 (IV. 22.) on the consumer protection principles required for financial institutions in the management of retail credit, loan and financial leasing contracts affected by payment arrears.
II. Social security
With the tax law amendments, the determination of the social security contribution base and the social contribution tax base has been simplified.
Under the current rules, if the income giving rise to the social security contribution is partly taxable in Hungary and partly abroad (in proportion to the work performed), the contribution base and the social contribution tax base are determined in proportion to the number of calendar days worked in Hungary and abroad. However, the personal income tax and contribution bases determined on the basis of working days and calendar days could differ. Henceforth, the contribution bases should be determined in proportion to the number of working days, as is the case for the personal income tax base.
III. The Gambling Act and the Personal Income Tax Act
Deregulation of gift lotteries
The strict rules of the gift lotteries, which are increasingly disappearing due to various promotions using modern IT solutions, have been removed from the Act on the Organisation of Gambling, while the obligation to notify gift lotteries has also been abolished.
20 July, 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
