On 16 June 2020, the Parliament of Hungary passed the bills on the termination of the state of alarm and the transitory rules related to the state of alarm. We would like to note, that the future entry into force of the law on the termination of the state of alarm, will not result automatically in the end of the state of alarm situation, the Government will need to make a separate decision on it. The applicability of the – typically favourable, taxation-related – rules proclaimed by decrees, which were discussed in earlier issues of our newsletter, will change as follows:

• The payment moratorium for obligations arising from loan and credit agreements, as well as from financial lease agreements will remain in effect until 31 December 2020, with the performance obligations and contracts also extended until that date.
• The rule also remains in effect that the corporate income tax, small business tax (“KIVA”), local business tax, innovation contribution, as well as the income tax of energy companies that would normally become due between 22 April 2020 and 30 September 2020 can be paid and filed until 30 September 2020. If a business wishes to use the option to file its tax returns later, then the tax advances will be determined on the basis of the payment obligations in effect in the preceding periods. The new amendment makes the effect of the government’s decree concerning spectator sports – which applied earlier only to the period of state of alarm – permanent, according to which the total value of sponsorship certificates in case of national sport associations, amateur sports organisation and foundations can be up to 100% of the expenses and costs in the sports development programme.
• The extended deadline for publishing annual reports (30 September 2020) will also remain in effect in case these would have been originally due by the previously mentioned period of time.
• The exemption of businesses engaged in certain categories of activities from the social contribution tax and the vocational contribution, as well as the reduced rate of health insurance contributions payable after their employees, will be last applicable in case of the obligations pertaining to June 2020. Businesses enjoying this allowance will only have to pay 2/3 of the general rehabilitation contribution for the 2020 tax year (and also, for this year, there is no further advance payment obligation either).
• Subjects of the small business tax  (“KIVA”) that are engaged in the beneficiated activities are exempted from taking personnel expenses into consideration as part of the tax base until June 2020.
• Subjects of the itemised tax of small businesses (“KATA”) engaged in these activities do not have to pay the itemised tax until June 2020; however, the tax exemption does not affect the revenue threshold.
• After the termination of the state of alarm, the exemption of businesses in the aviation industry from the social contribution tax can be applied until June 2020 (assuming that the act on the termination of the state of alarm enters into force in June).
• No tourism development contribution is to be paid for the period between 1 March 2020 and 31 December 2020. Further, the tourism tax is not to be collected and paid from 26 April 2020 until 31 December 2020, but the obligation to file the tax returns for the uncollected tax remains in effect.
• The even more favourable conditions with which benefits can be provided to employees by way of a SZÉP card (framework amounts and exemption from the social contribution tax) will remain in effect until 31 December 2020.
• The special payment facility introduced – meaning either surcharge-free payment delay of maximum 6 months, or the option of paying the tax in instalments over a maximum period of 12 months, also free of surcharge (in each case for a maximum tax amount of HUF 5 million)  as well as the payment reduction of 20% (for a maximum tax amount of HUF 5 million)– can be requested until the 30^th day after the end of the state of alarm.
• The reliable taxpayer status of a business may not be cancelled during the state of alarm and within 30 days afterwards with reference to an enforcement proceeding or a tax difference established due to a failure to pay the tax liability as due. Furthermore, the taxpayer will not lose its reliable status in case of failing to meet the condition of not owing a debt over HUF- 500 thousand or having a positive tax performance in the given tax year.
• In the course of determining a company’s status as a risky, or unreliable taxpayer, the tax authority shall ignore any tax differences established as owed by the taxpayer due to the breach of a tax-related obligation during the state of alarm and 30 days thereafter.
• Until the 30^th day following the end of the state of alarm, it is not necessary to provide a risk deposit in the EKÁER system. The risk deposit is first to be paid on the 31^st day, and its extent is to be determined on the basis of the EKÁER filings made from that day.
• If the deadline for the annual review of online cash registers or food and beverages vending machines expired during the state of alarm, this can be made up for within 120 days after the end of the state of alarm.
• The healthcare service contribution to be paid during the state of alarm after employees on unpaid leave is to be paid by the employer by the 60^th day after the end of the state of alarm. (Earlier, the extension of the deadline had to be applied for.)
• The modified rules of the Labour Code concerning the scheduling of work can be applied until 1 July 2020. The rules applicable to working time banking will remain in effect until the end of the given time banking period, regardless of the termination of the state of alarm.
• The wage subsidies for employees engaged in research and development activities, as well as those working in reduced working hours can be applied for until 31 August 2020, and subsequently used until 31 December 2020.
• The increased transaction limit without strong customer identification in case of payments with bank cards can be used until 31 December 2020.

If you have any further questions in connection with this topic, we are at your disposal.

We do hope that we could be at your service with this information. Should you have any further queries, please feel free, to contact us!