close
Share with your friends

Hungary: Social security relief for employers, response to coronavirus (COVID-19)

Hungary: Social security relief for employers

The government on 18 March 2020 introduced amendments to social security and certain tax payment rules in response to the coronavirus (COVID-19) pandemic.

1000

Related content

Modified social security rules are to apply for the period of March-June 2020 for certain sectors—the hospitality and tourism sector; entertainment, film industry, and performing art sector; the sport services sector; the event organization sector; and the gambling section. The changes provide that employers in these sectors will not be liable to pay the employer part of social security contributions (17.5% + 1.5%) with respect to employment income paid to employees for the period March-June 2020. Moreover, employees will only be liable to pay 4% healthcare social security contribution on their employment income received during the March-June 2020 period (instead of the aggregated 18.5% social security contribution). Nevertheless, the upper limit of the healthcare social security contribution will be HUF 7,710 a month.

Individual (personal) income tax must still be paid for March-June 2020.

Special rules will also apply for entrepreneurs dealing with passenger transport if they have opted for simplified lump-sum taxation (known as “KATA” in Hungarian). Based on the amendments, these entrepreneurs are not required to remit the lump-sum tax for the March-June 2020 period.


Read a March 2020 report prepared by the KPMG member firm in Hungary

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal