Plan to amend your PIT draft tax return!
20 May 2021, the deadline for submitting your 2020 personal income tax return is approaching. In this context, we would like to draw our clients' attention to some important, but perhaps less known information.
It is probably known to everyone that from 2017 onwards the Hungarian tax authority is preparing a draft personal income tax return for all individuals who have taxable income in Hungary from a Hungarian employer or payer. The draft tax return is available online for those who having the so-called Client Gate (Ügyfélkapu) access, but in the lack of Client Gate access the draft can be requested also by post.
In many cases, however, it is not worth sitting back and thinking that there is nothing to do about personal income tax, as there are some types of income that the Hungarian employer/payer is not aware of, or that are from a foreign employer/payer or not even a payer, and therefore are certainly not included in the draft tax return.
We would therefore like to draw your attention to the fact that it is always worth consulting a tax advisor if, for example, you are employed by a non-resident employer in Hungary or receive a benefit from abroad (e.g. from a foreign parent company) in respect of your Hungarian employment. It is also important to complete your draft tax return if in 2020 you have rented your property to an individual, sold a property or received interest or dividend income from abroad originated from your movable property.
Overall, the most frequently the following type of incomes may require the supplement of your draft tax return and possibly the payment of additional personal income tax:
- Income from a foreign employer/payer,
- Income from a foreign shareholding,
- Interest income from abroad,
- Dividend income from abroad,
- Income from the rental of real estate,
- Income from the sale of real estate,
- Income from the sale of movable property.
We, therefore suggest that you should plan to consult with a tax advisor for amending your draft tax return if you earned income in any of the above categories in 2020.
VGD Hungary Kft. has many years of experience in preparing personal income tax returns, so we can provide you with efficient assistance at short notice, even online.
