On 23 March 2020, the Government of Hungary has announced the implementation of new tax relief measures to curb the negative effects of COVID-19 crisis on the Hungarian economy.
- Small business sectors grant tax exemption from the obligation to pay small taxpayers’ itemized lump-sum tax (called in Hungarian ‘KATA’) until June 30 2020.
- KATA debts incurred before 1 March are also deferred, resulting in that the taxpayers concerned are allowed to arrange their relating tax payments, without any surcharges imposed, in 10 equal instalments in the quarter following the end of the state emergency.
- Modified social security rules are to apply for the period of March-June 2020 for certain sectors. Under this, employers in that sectors will not be liable to pay the employer part of social security contributions with respect to employment income paid to employees.
