Local business tax
Local business tax has been reduced to 1% for small and mid sized businesses. When considering if your Hungarian entity meets the SME criteria for LBT reduction purposes, figures of all connected businesses must be totalled and either their net sales total or balance sheet total must remain under HUF 4 billion.
Another criteria to meet is that your business did not qualify as a so called „enterprise in difficulty“ on December 31, 2019.
Personal income tax
As a temporary agreement between the employer and the employee and up to a maximum of 10% of the minimum wage (HUF 16,100) per month employees can be reimbursed tax free for their additional utility expenses related to their working from home.
Social contribution tax
Social contribution tax is currently 15.5%.
Industries most effected by the pandemic were offered social security incentives by the government.
Out of benefits-in-kind social contribution tax will not apply to the so called SZEP card payments, so this type of Bik is currently subject only to 15% personal income tax until EoY 2021. Also, the overall annual benefit amount that can be paid with this preferential rate has been temporarily increased from HUF 450,000 to HUF 800,000.
Tourist tax
Hotel guests do not pay tourist tax until the end of the state of emergency.