The provisions of the Governmental Decree no. 16/2023. (I.27.) has increased the reimbursable cost of commuting and traveling to home which can be provided with no tax obligations from HUF 15 per kilometre to HUF 30 per kilometre in case of traveling by car.
The new regulation
In practice, this means if the employees meet the requirement of commuting as per in the relevant legislation, therefore they daily commute from outside of the borders of the municipality where their workplace is, then employers are entitled to reimburse their costs up to HUF 30 per kilometre with no tax obligations in Hungary.
The legislative changes had no effect on the definition of commuting, therefore if the employee commutes from within the territory of their workplace’s municipality, the reimbursement still cannot be provided tax-free.
We highlight, that reimbursing the costs in case of commuting by car is still not obligatory but up to the decision of the employer in most cases.
The amount of the allowance
However, in some cases, reimbursement of a kind is compulsory, when at least 60% of the maximum amount must be provided to the employee (HUF 18 per kilometre):
- In case there is no public transport between the place of permanent or temporary residence of the employee and the workplace or
- the employee could only use with long waiting times or could not use at all public transport due to his work schedule or
- the employee due to their severe disability (according to the relevant legislation) could not use public transport (including those cases when they are transported by a relative) or
- the employee has a child who is in nursery care or who is under the age of 10 and in kindergarten or in school.
The option for an increased amount of cost reimbursement is not only to be used in case of daily commuting but also for traveling home at the weekends.
It is important, that whereas the increased amount may be used for commutes and traveling in January as well, the obligation of paying at least HUF 18 per kilometre is only applicable from 1 February 2023.
Phone: +36 141 235 30