Tax related measures introduced under the Economic Protection Action Plan

Financial reports 
The disclosure deadline of annual financial report is postponed to 30 September 2020. As a result, the deadline for annual tax returns related to these financial statements is also postponed as detailed in the following sections. The annual financial report deferral does not apply to taxpayers of public interest.

Social Contribution
Social Contribution rate will be reduced from 17.5% to 15.5% as of 1 July 2020. Social Contribution will not be levied on benefits paid to Széchenyi Holiday Card by 31 December, so these benefits will only be subject to 15% personal income tax. The overall benefit amount that can be paid with preferential rate is raised from HUF 450,000 to HUF 800,000 in 2020 with the following allocation: HUF 400,000 to the accommodations account, HUF 265,000 to the food and beverages account and HUF 135,000 to the recreational account. The overall benefit amount that can be paid with preferential rate is raised from HUF 200,000 to HUF 400,000 for State Institutions in 2020.

Corporate Income Tax
Corporate Income Tax return filing (and tax paying) deadline is postponed to 30 September 2020. Taxpayers will have to pay corporate tax advance in accordance with the tax advance obligation set in the latest tax return until the tax return for 2019 is filed. A taxpayer can request a reduction in the tax advance payments (before these become due) if the taxpayer calculates that the projected tax for the tax year beginning in 2020 does not reach the amount of the tax advance. The same applies to Small Enterprise Tax advance, Energy Suppliers’ Income Tax advance, Innovation Contribution advance.

Local Business Tax
Local Business Tax return filing (and tax payment) deadline is postponed to 30 September 2020. However, taxpayers still have to pay tax advance by 15 September 2020. If the taxpayer does not submit annual Local Business Tax return by 15 September 2020, thereby does not declare an advance payment amount, the amount of the previously declared business tax advance must be paid. A taxpayer can request a reduction in the tax advance payment (before it becomes due) if the taxpayer calculates that the projected tax for the tax year beginning in 2020 does not reach the amount of the tax advance.

Small Enterprise Tax
Small Enterprise Tax return filing (and tax payment) deadline is postponed to 30 September 2020. For details of tax advance payment obligation, please see the section on Corporate Income Tax. Small Enterprise Tax rate will be reduced from 12% to 11% as of 1 January 2021.

Tourist tax
Guests shall not pay Tourist Tax for the remainder of 2020, but hotels’ reporting obligation remains in effect (without payment obligation).

Tax procedures
Taxpayers' reliable tax classification cannot be revoked due to default payment of taxes during the state of emergency (or within 30 days thereafter).
Taxpayers can request tax payment reliefs due to the pandemic:  

•  Companies can request (once) a 12-month instalment payment or a 6-month deferral of payment without a surcharge up to a tax debt of HUF 5 million, if it is proven or shown as reasonably likely that they got in a difficult situation due to the coronavirus. Applications may be submitted to the tax authority by the thirtieth day after the end of state emergency. The tax authority shall process the applications within 15 days;
• Companies can request a tax liability reduction of 20% up to a maximum of HUF 5 million in respect of any type of tax, if the payment of tax would make it impossible for the company to carry on its activities due to the pandemic. Applications may be submitted to the tax authority by the thirtieth day after the end of state emergency. The tax authority shall process the applications within 15 days.

Other measures
Road transporters do not have to pay risk guarantee for their Electronic Public Road Trade Control System (“EKÁER”) reports until the thirtieth day after the end of the state of emergency, and previously paid guarantees will be refunded.
Software review and on-site inspection do not need to be performed for online cash registers and vending machines during the state of emergency. These activities should be carried out within 120 days of the end of the state of emergency.
Employees on unpaid leave are still entitled to public health care. The HUF 7,710 health care contribution will have to be paid by the employers as of 1 May.