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Hungary

Government and institution measures in response to COVID-19.

Government and institution measures in response to COVID-19.

Return to homepage  |  Last updated: 2 December, 2020

General Information

The government on 18 March 2020 introduced amendments to social security and certain tax payment rules in response to the coronavirus (COVID-19) pandemic, along with a few other measures related to employment and loan regulations.

Tax measures – Direct and Indirect

(e.g. payment deferrals, rate reductions…)

Click here to see a comprehensive summary of jurisdictional tax measures and government reliefs in response to COVID-19.

Employment-related measures

(e.g. state compensation schemes, training…)

  • The working time frame shall not be affected by the end of the state of emergency

Financial measures

  • Loan repayments are suspended until the end of 2020 for all private individuals and businesses who took loans out before 18 March.
  • The annual percentage rate (APR) of new consumer loans has been maximized at the central bank prime rate plus 5 per cent.
  • The same measures are also available for Start-ups

New rules regarding tax payement:

  • The Notice 7013/2020 of the Head of the Customs Department of the Central Management of Hungarian tax Authority on the exemption from import duties and added value tax on goods which may be used for protection against the coronavirus:
    • Between 30 January 2020 and 31 October 2020, imports of products that can be used to protect against the coronavirus for the benefit of the victims of the disaster are duty-free and VAT-free.
    • The imported goods most be used for the following purposes: goods are distributed or available free of charge among the victims of the disaster.
    • No relief shall be granted for materials and equipment intended for rebuilding disaster areas.
    • In order to obtain the exemption, the importer has to initiate the procedure.
    • The following importing organizations can benefit from duty exemption: state organizations, local governments, public institutions, disaster management, other charity, non-profit organizations.
  • The Act LVIII of 2021 on transitional rules and epidemiological preparedness
    • the aim of the Act is to to ensure a regulatory transition in the context of emergency measures taken to prevent and address the consequences of a coronavirus
    • the Act lays down the rules applicable after the end of the state of emergency
    • the following transitional rules of the Act took effect upon the end of the state of emergency
    • Transitional rules to facilitate the tax liabilities:
      • corporate income tax, small company tax and tax of energy supplier, municipal trade tax and innovation contribution: taxpayers may comply with the annual and extraordinary tax return and payment obligation due between 22 April 2020 and 30 September 2020, as well as the tax advance and innovation contribution advance payment obligation until 30 September 2020.
      • in the case of local taxes, the tax exemption declaration can be submitted to the tax authority until 30 September 2020.

Economic stimulus measures

(e.g. loans, moratorium on debt repayments…)

New rules related to entering the territory of Hungary:

  • The new Government decree effective as of 1 September 2020 laid down the rules for restrictions in case of travel to Hungary („Travel restrictions”).
  • Persons arriving from abroad to Hungary from non-business travels, such as
    • Hungarian citizens and their relatives (e.g., wife, children);
    • Persons entitled to stay permanently or for a period of more than 90 days in Hungary and their relatives;
    • Athletes, sport professionals, who are members of a Hungarian sport club or delegates, invitees of a sport event

May be subject to mandatory health examinations when entering Hungary.

  • In case of suspected infection, the person concerned must stay in quarantine at home or at a place designated for such purposes by the competent authorities. In this case employees, who must be in quarantine at home due to infection / suspected infection established by health examinations, qualifies as persons incapable of work and thus are entitled to sick pay.
  • In the lack of suspected infection, the person concerned must stay in quarantine at home or at a place designated for such purposes by the competent authorities for 10 days. Persons having completed SARS-CoV-2 PCR test twice within 5 days and got negative results may be exempted from quarantine. In this case, employees, who must stay in home-quarantine for 10 days, do not qualify as persons incapable of work and thus are not entitled to sick pay. In such cases home office work, paid or unpaid leave may be an option for such employees..
  • COVID-test complying with the professional rules of healthcare and the following conditions, it can be accepted as first COVID PCR test:
    • it was carried out in any country belonging to the Schengen area or in the USA or in Canada, and
    • the person concerned certifies its results by furnishing a document to that effect in Hungarian or English.
  • From 22 September the term of quarantine has been reduced from 14 days to 10 days.
  • The new  supplementation of Government decree Nr. 217/1997. (XII. 1.) effective as of 15 August 2020 laid down the rules for restrictions in case of travel to Hungary („Travel restrictions”) from a country with a less severe or severe infection, which travel had unofficial purposes. The person for whom the authority ordered to go to quarantine at home,  when entering the territory of Hungary, does not qualify as person incapable of work and thus are not entitled to sick pay. In such cases home office work, paid or unpaid leave may be an option for such employees

As of 4 November the State of Emergency was reintroduced. The Hungarian Government introduces further restrictions as of 11 November 2020 as follows:

CURFEW:

  • curfew will be in effect between 8 p.m. and 5.a.m except for commuting to or from work, and in extraordinary cases;
  • all forms of assembly is prohibited.

EVENTS:

  • holding events are generally prohibited;
  • 10 people as a maximum may take part in family gatherings and private events;
  • weddings may be held only without a reception, in church and civil ceremony only those persons may participate whose presence is necessary for the ceremony, such as witnesses, parents, siblings;
  • in funerals, maximum 50 person may be attended;
  • all sporting events must take place behind closed doors, without spectators

RESTAURANTS, SHOPS, HOTELS, CRAFT SERVICE PROVIDERS:

  • the restaurants shall be closed, only home delivery is permitted, factory canteens may remain open;
  • shops, hairdressers and other craft service providers may be open until 7 p.m;
  • hotels may host only guests arriving for business purposes, they may not host tourists

SPORT EVENTS:

  • while individual outdoor sporting activities are permitted, taking part in amateur team sport is prohibited;
  • leisure facilities (fitness room, indoor swimming pool, museum, theatre, zoo) shall be closed

EDUCATION:

  • higher education may operate only online, colleges, higher education colleges shall be closed;
  • in secondary schools above 8th grade, digital education shall be in effect;
  • nurseries, kindergartens, primary schools for children under age 14 remain open

As of 4 November the State of Emergency was reintroduced The Hungarian Government introduces further restrictions II. as of 11 November 2020:

HEALTH CARE MEASURES:

  • hospital workers, school teachers, kindergarten’s and nursery’s workers should be tested on a weekly basis

SUPPORTVIE MEASURES OF STATE:

  • upon the recommendation of the Chamber of Commerce and Industry the state reimburses hotels 80 % of the reservations made for the next 30 days until 8 November, provided that the employees’ employee relationship will not be terminated and they will receive their salary;
  • restaurants, leisure facilities shall not pay social contributions after employees for 30 days. The state also covers half of the employees’ salary, provided that the employees’ employee relationship will not be terminated and they will receive their salary;

The Government introduces the restrictions for 30 days. 

Contact us

Tax: Gábor Beer – gabor.beer@kpmg.hu
Restructuring: Andrea Sartori – andrea.sartori@kpmg.hu
Legal: Bálint Tóásó – balint.toaso@kpmg.hu