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We have been waiting for a long time for the publication of the Government Decree on financial and procedural regulation, which will bring tax relief. On April 21, 2020, the 140/2020 (IV. 21.) Government Decree was published.
Obligations for the assessment, declaration and payment of taxes and contributions due between 22 April and 30 September 2020, and the obligation to establish and declare tax and contribution advances to be fulfilled at the same time as the annual tax return may be fulfilled by taxpayers by 30 September 2020 in the following tax types:
If the taxpayer decides to defer the tax return obligations, an important consequence is that (s)he has to pay the tax advances based on the last submitted tax return (FY 2018) till 30 September. Good news however, that application for tax advance relief is an option for any entity whose annual tax burden expectedly won’t reach the sum of tax advances.
The deadlines for the preparation, disclosure, deposit and publication, as well as submission of reports according to the Accounting Act, if they are due between 22 April and 30 September 2020, shall be extended until 30 September 2020. The deadline for additional accounting obligations based on these financial statements shall also be calculated from that date. This rule does not apply to the accounts of public interest entities.
Recreational amount doubled in 2020 – HUF 400 thousand in the case of national institutions, and HUF 800 thousand in the case of other employees.
In 2020, the followings are considered as fringe benefits:
The employer does not pay social contribution tax on the amounts qualified as fringe benefits transferred to the SZÉP card between 22 April and 30 June 2020.
The tourist tax based on guest nights spent during the above period does not have to be paid by the taxpayer, the person liable to collect the tax does not have to collect and pay it, but the “not-collected” tax must be declared to the tax authority (unless the amount is zero).
Based on the classification performed during and after the emergency, the taxpayer’s qualification as a reliable taxpayer cannot be revoked during the emergency or within 30 days thereafter
by reference to the tax difference established against the taxpayer for breach of the tax liability, or during the above period
-with reference to the enforcement procedure initiated, and because
-a net tax debt exceeding HUF 500 thousand, or because
-the tax performance for the current year is not positive.
During and after the emergency qualification, the state tax and customs authority in the examination of the conditions when classifying a risky taxpayer disregards the tax difference charged to the taxpayer due to a breach of tax liability during the emergency or within 30 days thereafter.
In addition to the payment reduction options that are already in force, the Government offers two payment relief options to tax payers under the Economic Protection Action Plan.
From 22 April until the 30th day after the end of the emergency, the taxpayer may request electronically,
The procedure is duty-free, the tax authority has a deadline of 15 days for process of applications.
When disclosing taxpayers with large tax deficits, the tax authority shall disregard the amount of tax shortfalls and legal consequences imposed on the taxpayer for the breach of the tax liability during the emergency and within 30 days thereafter.
When disclosing taxpayers with a large amount of tax debt during the emergency and a quarter of the 30th day after the end of emergency, the tax authority shall disregard the tax debt due during the emergency and within 30 days thereafter.
The taxpayer shall be exempted from providing deposit during the period of the emergency and until the 30th day after the end of the emergency, when determining the EKAER number due to the activity of road transport of risky product. The tax authority shall immediately and ex officio arrange for the return of the amount of the deposit paid to the segregated deposit account before 22 April 2020 to the taxpayer.
The annual review of cash register must be carried out by the operator within 1 year after its commissioning or last annual service. If this period expires during the period of the emergency, the operator must carry out the review within 120 days of the end of the emergency.
Also, within 120 days after the end of the emergency, the operator is obliged to carry out the mandatory inspection of food vending machines without handling personnel.
During the period of the emergency, an employee on unpaid leave due to an emergency will continue to be entitled to national health care service.
From 1 May 2020, until the 12th day of the following month, the employer asses, declares and pays the health care service contribution for this employee. At the request of the employer, the tax authority allows the employer to pay the established and declared amount of the health service contribution until the 60th day after the end of the emergency.