The decrees, published Monday night in the Hungarian Gazette, provide the following facilitation for companies, private debtors, children educators and credit card users in Hungary.

Government Decree no. 57/2020. (III. 23.)

During the time of the emergency, the following provisions of Act LIII of 1994 on judicial enforcement shall apply with the following differences effect from 24 March 2020:

• no bailiffs can take place
• if the debtor indicates his intention to pay in instalments, the bailiff may determine this without the prior consent of the person seeking enforcement
• bailiff suspends personal customer acceptance
• the applicant for information may be informed by means of telecommunications
• traditional auction cannot be held,
• no on-site procedural action can be taken
• no action may be taken for the evacuation of the property
• the bailiff may not take action to withdraw the vehicle seized during the enforcement procedure
• the bailiff may not take action to auction the residential property of the natural person debtor
• in the course of enforcement proceedings, a person who has failed to comply with his obligations due to the epidemiological measures cannot be fined

At the request of the debtor, the enforcement court may suspend the enforcement if the debtor is placed in a life situation which is an equitable circumstance in connection with the epidemiological measures.

Provisions specifically relating to proceedings pending in front of the tax authority:

• From 24 March 2020, the enforcement proceedings pending in front of the tax authority are suspended.
• From 24 March 2020 until the 15th day after the end of the emergency, the limitation period for enforcement is suspended.

In cases of suspension, the tax authority shall:

• If the collection initiated by the tax authority has not yet been completed by the payment service provider, the tax authority shall immediately take action to withdraw the collection.
• If the payment service provider has collected the debt during the interruption and transferred the amount to the tax authority, the tax authority will reimburse it to the debtor within 8 days of becoming aware of it.
• If the tax authorities have forfeited income and the employer has not yet paid the tax to the tax authority, the tax authority informs the employer for the suspension of the deduction of income.
• The employer must reimburse to the debtor the amount which he has deducted during the period of suspension but which has not yet been transferred to the tax authorities.
• The amount transferred by the employer to the tax authority on the basis of the income disqualification after the start of the interruption shall be refunded to the debtor within 8 days.

Government Decree no. 58/2020. (III. 23.)

• eligibility for health care and family support benefits with regard to the care and upbringing of a child is extended until the end of emergency

Government Decree no. 59/2020. (III. 23.)

• eligibility for childcare fee (GYED), grandparenting childcare fee and childcare fee as equitable cash benefit during the emergency shall be deemed to continue to exist and the benefit shall be paid in calendar days during the period of emergency.
• eligibility for childcare allowance (GYES) and child-upbringing allowance (GYET) shall be deemed to continue to exist during the period of emergency and shall be paid in calendar days during the period of emergency.

Government Decree no. 60/2020. (III. 23.)

• the payment service provider does not apply strong customer authentication if the individual amount of the touch electronic payment transaction does not exceed fifteen thousand HUF.

According to the Government decree, from April 15, 2020 at the latest, it will be realized that in touch-based payment the limit will be no longer HUF 5,000, only in case of the payment above HUF 15,000 the PIN code of the card will be necessary.

Government Decree no. 61/2020. (III. 23.)

• do not have to pay social contribution tax,
• do not have to pay vocational training contribution,
• must pay only the 4% health care contribution in kind on the basis of the contributory income but up to a maximum of HUF 7710,
• for March, April, May, and June 2020,
• in respect of the employment of a natural person in an employment relationship,
• with regard to this status of self-employed, and
• with regard to this status of corporate entrepreneur,

who performs the following activity identified by TEAOR and TESZOR as the actual principal activity, means that, in the six months prior to March 24, 2020, the taxpayer generated most of the revenue, or at least 30% of the revenue from the following activities:

1. taxi passenger transport (TEÁOR and TESZOR 49.32),
2. accommodation services (TEÁOR and TESZOR 55),
3. catering (TEÁOR and TESZOR 56),
4. creative, artistic, entertainment activities (TEÁOR and TESZOR 90),
5. sport, entertainment and leisure activities (TEÁOR and TESZOR 93),
6. gambling, betting (TEÁOR and TESZOR 92),
7. production of films, videos, television programs, sound recording publishing (TEÁOR and TESZOR 59),
8. organization of conferences and trade shows (TEÁOR and TESZOR 82.30),
9. publication of daily newspapers (TEÁOR and TESZOR 58.13),
10. publication of periodicals and magazines (TEÁOR and TESZOR 58.14) and
11. program compilation, broadcasting (TEÁOR and TESZOR 60).

For those taxpayers listed above who are required to pay the rehabilitation contribution, the rate of the rehabilitation contribution is two-thirds of the contribution pursuant to point 5, article 23 of Act on rehabilitation contribution and benefits for disabled persons. In addition, they are not required to pay any advance on the rehabilitation contribution.

The individual Small Business Tax (KIVA) taxpayer who carries out one of the above activities as an actual principal activity does not consider the amount of personal expenses as a small business tax base in determining the small business tax liability for the months of March, April, May and June 2020.

The Itemized tax to small businesses (KATA) taxpayer who is engaged in any of the following activities (hereinafter “exempted activities”) shall be exempt from itemized tax to small businesses with respect of March, April, May and June 2020.

1. taxi passenger transport (TEÁOR and TESZOR 4932),
2. hairdressing, beauty treatment (TEÁOR and TESZOR 9602),
3. painting, glazing (TEÁOR and TESZOR 4334),
4. other human health care (TEÁOR and TESZOR 8690),
5. electricians (TEÁOR and TESZOR 4321),
6. physical well-being service (TEÁOR and TESZOR 9604),
7. performing arts (TEÁOR and TESZOR 9001),
8. water, gas, heating, air conditioning installation (TEÁOR and TESZOR 4322),
9. specialist outpatient care (TEÁOR and TESZOR 8622),
10. joinery installation (TEÁOR and TESZOR 4332),
11. sports, leisure training (TEÁOR and TESZOR 8551),
12. roofing, roof construction (TEÁOR and TESZOR 4391),
13. general outpatient care (TEÁOR and TESZOR 8621),
14. floor and wall covering (TEÁOR and TESZOR 4333),
15. outpatient dental care (TEÁOR and TESZOR 8623),
16. activities ancillary to the performing arts (TEÁOR and TESZOR 9002),
17. other sports activities (TEÁOR and TESZOR 9319),
18. inpatient care (TEÁOR and TESZOR 8610),
19. organization of conferences, trade shows (TEÁOR and TESZOR 8230),
20. holiday and other temporary accommodation services (TEÁOR and TESZOR 5520),
21. exercise service (TEÁOR and TESZOR 9313),
22. other catering (TEÁOR and TESZOR 5629),
23. other accommodation services (TEÁOR and TESZOR 5590),
24. gambling, betting (TEÁOR and TESZOR 9200),
25. social work activities without accommodation for the elderly and disabled (TEÁOR and TESZOR 8810) and
26. hotel service (TEÁOR and TESZOR 5510).

Exemption from the obligation to pay taxes does not affect the entitlement of social security benefits and the amount of those benefits.

The KATA taxpayer can pay its tax debt which was due before 1 March 2020 in instalments at no extra cost.

Gábor Kertész

Head of Advisory | Accace Hungary

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+36 141 235 30

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