TAX LAW CHANGES 2021
3.
Small business tax (KIVA)
The turnover and total assets threshold below which companies are entitled to choose this favourable taxation scheme will increase from the current HUF 1 billion to HUF 3 billion (but still subject to the statistical headcount limit of 50). The revenue threshold for the termination of eligibility for KIVA will also increase from the current HUF 3 billion to HUF 6 billion. The change will take effect as of 1 December 2020, thus enabling the companies that exceed the old thresholds, but are below the increased limits, to choose KIVA for 2021, or to remain under it in 2021, too.
Also, from 1 December 2020, if a company with enforceable tax debts exceeding HUF 1 million settles its arrears before the decision by the tax authority to terminate its KIVA taxpayer status becomes final, the decision should be revoked.
The rules of the transition from KIVA to corporate income tax have been refined.
