The Hungarian Government has adopted new regulations on economic protection

Following the announcement of the Hungarian Prime Minister yesterday morning (Monday, March 23), the Government’s new measures to assist the Hungarian economy were announced in the Hungarian Gazette on the same day. In our current newsletter we have collected the most important ones.

Partial tax and contribution exemption for small businesses

Regarding the Small Business Tax (abbreviated in Hungarian as “KATA”), the regulation lists 26 entrepreneurial activities (e.g. hairdressing, beauty care, construction trades, etc.) in which the entrepreneurs do not have to pay the flat tax for the period ending 30 June, still they remain entitled to social security. It is also a relief for them, that they can pay their tax debts due before 1 March 2020 in equal instalments for 10 months from the month following the end of the emergency situation, with no late payment.

Waiving of wage contributions

There is also a widening of the sectors covered by the waiving of wage contributions (new industries such as newspaper publishing or TV programme production are included), in these companies, besides the personal income tax, only the employee’s health insurance contributions should be paid to the Hungarian Budget, but only up to HUF 7,710 (approx. EUR 23).

Moratorium on judicial enforcement and eviction

Recovery of court enforcement and tax debts is suspended until the 15th day after the end of the emergency situation.

Change in child care benefits

Eligibility for childcare facilities (abbreviated in Hungarian as “GYES”), for childcare fee (“GYED”), for childcare allowance (“GYET”) and for other health care and family support for the care and education of children are extended until the emergency situation ceases.

The limit for contactless credit card payments without a PIN has increased from HUF 5,000 (approx. EUR 15) to HUF 15,000 (approx. EUR 45)

Should the unique amount of credit card payment transaction does not exceed 15 thousand HUF, entering the PIN at the terminal is not required.

* * *

Should you have any questions regarding this newsletter, feel free to contact us: VGD Hungary’s experts will be at your disposal.