1. New tax breaks and government decrees introduced in connection with the state of emergency
Due to the Covid-19 emergency a number of measures at the level of government decrees has been taken and will certainly be taken to curb the virus and protect the economy. A significant portion of the provisions introduce restrictions; however, in the interest of the protection of the economic activities of companies, similarly to the spring period, some tax breaks have also been introduced by way of the Government Decree. In the present issue of our newsletter, we discuss the newly introduced measures.
2. Coronavirus- taxation treatment of donations
The Government has submitted the bill on ending the state of alarm, the debate of which in Parliament has already started. This means that the state of alarm due to COVID-19 will soon come to an end; however, the taxation consequences must still be reckoned with in many cases.
3. The most recent changes in tax laws
As the state of alarm is drawing to an end, there is a decreasing tendency in the number of new provisions of law introduced to ease the situation of taxpayers. However, it is definitely worth mentioning three, recently published provisions that may provide additional benefits for businesses.
4. Kurzarbeit details
The amended rules of the wage subsidy related to employment in reduced working time (“Kurzarbeit”) entered into force on 29 April 2020, and it was also on this day only that the National Employment Service finally published the necessary forms on its website.
5. New retail tax act & the amendment of the CIT act
On 28 April, the Government submitted two significant bills to Parliament. One of the proposed acts includes the final rules applicable to the retail tax introduced earlier as a temporary tax, while the other bill concerns the amendment of the Corporate Income Tax (CIT) Act related to the development reserve.
6. Coronavirus- Details on tax relief measures finally published
Exactly two weeks elapsed from the initial announcement until the promulgation of the decree on temporary tax relief measures provided by the government.
7. Special tax on retailers, returned
Pursuant to the Government’s decree promulgated on 14 April, special taxes imposed on retailers and banks, aimed at replenishing the Epidemiological Fund, will enter into force on 1 May 2020.
8. Reduced working hours (Kurzarbeit) and state subsidized R&D activities
In the economic situation emerging as a result of the Covid-19 pandemic, the preservation of jobs has outstanding significance. In the interest of the above, the Government introduced subsidized wages in case of shorter working hours (with the commonly used expression from German:Kurzarbeit), as well as subsidies for employers engaged in research and development activities.
9. Additional endangered sectors added
In case of activities declared as “endangered sectors” due to the COVID-19 pandemic, relief is provided for the businesses concerned as well as their employees from the payment of the social contribution, individual contributions, the vocational training contribution, as well as the rehabilitation contribution.
10. Further changes in employment and company law due to the state of alarm
On the basis of the government decree promulgated on 10 April 2020, new rules are applicable to working time banking systems and to the operation of legal persons.
11. Transfer prices in times of coronavirus
During this global pandemic, companies should urgently review their existing transfer pricing models in order to reassess transfer pricing risks, take appropriate countermeasures in the short term and find efficient solutions for compliance.
12. The scope of endangered sector has been expanded
On the basis of the special legal order introduced due to the COVID_19 coronavirus pandemic, on 23 March 2020, the Government of Hungary adopted new measures by way of a government decree, the aim of which is the alleviation of the economic impacts of the pandemic. Some new sectors have now been added to those exempted from certain taxes and contributions.
13. Measures of economic protection: here is the second pack
On the basis of the special legal order introduced due to the COVID_19 coronavirus pandemic, on 23 March 2020, the Government of Hungary adopted new measures by way of a government decree, the aim of which is the alleviation of the economic impacts of the pandemic. In the present issue of our newsletter, we discuss the aspects of these measures in terms of taxation and the procedures of the tax authority.
14. The first measures of economic protection have just been announced
Since the declaration of the COVID_19 coronavirus disease as a pandemic and the appearance of the first diagnosed patients in Hungary, events have picked up speed also in an economic sense. In the past few days, the Government of Hungary has introduced several measures designed to assist both economic operators and private individuals, as well as to minimise the negative impacts of this transitory period. The present newsletter provides information on the tax-related, financial and other economic aspects of these measures, focusing in particular on the area of taxation.
15. Options in case of temporary tax- related difficulties
Several proposals have been published in the recent days in connection with the temporary measures related to financial and taxation affairs with which the government should help businesses in surviving the economic difficulties of the upcoming period. We are certain that the decision-makers will hear these voices and will try to help companies in trouble by way of administrative means. But what can be done until these new rules are introduced?
16. Not enough work for the employees?
The Hungarian government decided that all shops must close at 3 pm, with the exception of pharmacies, food stores, fuel stations and tobacco shops. The urgent question is how to treat these under Hungarian employment law? We are discussing the options below.
Tracker and analysis of the latest COVID-19 tax measures and legislation in each country:
Interactive tool and COVID 19- Business Guide for Central and Eastern Europe: