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Covid-19 recovery package update

Covid-19 newsletter
22 April, 2020

The government updated their original recovery package today, bringing some easing in the area of taxation and the reduced working time support scheme.


Easing in administration.


Annual accounts.

The financial statements are originally due for filing on 31 May. However, in the current state of emergency, the deadline has been changed to 30 September.

This easing is not available for the companies of public interest, they need their annual accounts closed, audited and published by the original deadline of 31 May.



There are a number of reporting and annual tax payment deadlines being shifted to 30 September 2020. These are:

  • Annual corporate tax
  • Annual KIVA tax
  • Energy suppliers extraordinary tax
  • Innovation contribution tax
  • Local business tax

These annual taxes shall be reported by 30 September, and the annual tax payment is also due on this same date.

In case of the local business tax if the reporting won't get completed by when the local business tax advance will become due on 15 September, then the due advance on 15 September will be based on the previous advance.

In case of other taxes: the tax advances that become due until 30 September (or the tax filing) will be based on the previous advances. Advance payments are still due as originally, there is no change in the advance payments.

Annual HUF 800 thousand at most can be topped up on employees' SZÉP recreation cards, which is free of social contribution tax.

The tourism tax payment is waived until 31 December 2020, and so hospitality businesses don't need to collect this tax from their guests.

From 1 July 2020 the social contribution tax becomes reduced to 15.5 per cent, and from 1 January 2021 the KIVA tax to 11 per cent.


Tax administration.

Reliable classification of a taxpayer cannot be amended during the state of emergency with relation to the forced collection.

The tax office is allowed to offer 6-month deferred payment or 12-month instalment for companies having at most HUF 5 million tax debt if the taxpayer justifies their payment difficulties have originated from the emergency. The application shall be filed in 30 days from the end of the emergency.

Taxpayers are allowed to apply for a one-time tax reduction of up to 20% or HUF 5 million if the tax payment would make the operation impossible justifiably due to the emergency. The reduction can be required for one tax code only. In this case, further payment benefits are not allowed. The application shall be filed in 30 days from the end of the emergency.

Under the EKAER system, the taxpayer is not required to provide risk deposit. The deposited amount is going to be repaid to the taxpayer.

Those cash machine annual revisions which become due during the emergency shall be carried out in 120 days from the end of the emergency.

Those being sent on unpaid leave will remain eligible for health services. The health service contribution shall be paid by the employer from 1 May 2020.



Reduced working time employment support scheme update.

The reduced working time shall be at least 25% and at most 85% of the orignal working time. This means that an original 8-hour employment reduced to 2 - 6.8 hours are eligible for the support scheme.

Staffing obligation changed to: the employer shall keep the employee in employment on whom they receive the support.

If the amended working time is less then half of the original working time then the individual development time became just optional. Otherwise the individual development time is still a requirement.

This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained herein without obtaining specific professional advice.

We, our partners, employees or agents don't accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.