In our\nnewsletter, we try to summarize the most important tax changes effective from\n2020 (partly from 2019) and affect our Clients.<\/p>\n\n\n\n
There will\nbe several changes in the regulations of accountancy,\nvalue added tax, corporate income tax, small taxpayers tax, personal income\ntax, excise duty, local tax, social contribution tax, health contribution fee\nand the conditions for short-term rental activity.<\/strong><\/p>\n\n\n\n Private entrepreneurs\nmay establish one-person limited liability companies (Kft.). The advantage of\nthis possibility is that the accumulated assets, earnings, losses etc. of the\nprivate business may be taken over by the company to be formed.<\/p>\n\n\n\n From 2020, the limit for immediate depreciation\nrises from 100.000.-HUF to 200.000.-HUF. <\/strong>The advantages of this change are obvious. The\nnew legislation is applicable to the assets purchased after 1st<\/sup>\nJanuary 2020.<\/p>\n\n\n\n From 2020, EVA\ntaxation system is no longer a possibility for taxpayers. Therefore tax\nsubjects must pick a new VAT status and make their choices (VAT free, the\ntaxation of properties etc.). Tax Office\nwill declare the new tax<\/strong> number\nuntil 15th<\/sup> January 2020<\/strong>. This is a limitation date which means\nafter this day taxpayers will not be able to pick a voluntary choice, instead,\nthe Tax Office will determine a default VAT setup according to the general VAT\nrules.<\/p>\n\n\n\n The VAT law\nwill allow irrecoverable receivables to be recognized and the amount to be\ndeducted partly of fully from payable VAT. In order to do so, taxpayers should\nfulfill the following requirements:<\/p>\n\n\n\n The VAT rate of the short-term rental activity\nfrom 2020 will decrease from 18% to 5%. <\/strong>This is applicable for bookings made after 1st<\/sup>\nJanuary 2020.<\/p>\n\n\n\n From 1st<\/sup> July 2020<\/strong>, all invoices issued to another domestic VAT subjects must be reported\nindependently of the VAT amount<\/strong> (including VAT free invoices also!).<\/p>\n\n\n\n From 1st<\/sup> January 2020, all invoices\nmust be reported <\/strong>whether\nthe invoice is issued to another VAT payer or not.<\/p>\n\n\n\n From 1st<\/sup> July 2020,<\/strong> the tax number of the buyer\n(customer) must be indicated in the invoices. The maximum issuance period (i.e.\nthe maximum time that may be elapsed from the fulfillment till the issuance) is narrowed down from 15 days to 8 days.<\/strong><\/p>\n\n\n\n Taxpayer\nwill no more be required to fill up their corporate income tax at the end of\nthe financial years. This obligation was already driven out in 2019.<\/p>\n\n\n\n From 24th<\/sup>\nJuly 2019 the maximum amount of improvement reserve is decreased to 300 million\nHUF. This sum will further be lowered to 200 million HUF (2021) and 50 million\nHUF (2022). Still it is a great opportunity to save some taxes.<\/p>\n\n\n\n The rate of KIVA is decreased to 12%.<\/strong><\/p>\n\n\n\n The\ndefinition of the dividend received<\/strong>\nwill be specified: in the future, dividend received should not be calculated in\nthe overall income and, therefore, is not considered as tax basis.<\/p>\n\n\n\n Those mothers,\nwho have more than 4 or more children<\/strong>\n(including the adopted ones also) and raise them in their own household,\nreceive a full personal tax exempt. In parallel to this, they are entitled to\nobtain the family tax and social security allowances and get a refund from their\nsalaries.<\/p>\n\n\n\n The rate of\nsocial contribution tax is lowered to 17.5%\nfrom 1st<\/sup> July 2019.<\/strong><\/p>\n\n\n\n From 1st<\/sup>\nJuly 2020, there will a new, unified social security legislation come into\neffect.<\/p>\n\n\n\n From 1st<\/sup>\nJuly 2020, the health contribution and unemployment contribution will be merged\ninto one tax with 8.5%<\/strong> rate.<\/p>\n\n\n\n The minimum\ntax basis of contributions and social security tax for those who are employed will\nbe the 30%<\/strong> of official minimal wage\nindependent of the actual wage. This regulation is \u201cdesigned\u201d for those who\ne.g. apply a 2 hours per week employment to minimize the taxes to be paid.<\/p>\n\n\n\n From 1st<\/sup> July 2020<\/strong>, all employment forms (including\nwork, assignment contracts and personal contribution in a company) will fall\nunder full personal social security tax (i.e. the contributions that are\ndeducted from the gross salary) exemption. Those who are retired due to their\nage, will have not to pay social\ncontribution tax<\/strong> also.<\/p>\n\n\n\n From\n1st July 2020, <\/strong>the tax of any legal employment relationships that are not considered\nwork contracts will be 18.5%<\/strong>.<\/p>\n\n\n\n From 1st<\/sup>\nJanuary 2020, the amount of health contribution fee will be raised to 7.710.-HUF\/month\/capita.<\/strong><\/p>\n\n\n\n There will\nbe also a new legislation that requires the individuals to have not more than 3 months<\/strong> of unpaid health\ncontribution fee otherwise the social security number (TAJ) will be\ninvalidated.<\/p>\n\n\n\n The minimum\nwage from 2020 will be gross 161.000.-HUF<\/strong>,\nthe guaranteed minimum wage (in case of a job that requires at least a\nsecondary school education) will be gross 210.600.-HUF<\/strong><\/p>\n\n\n\n Local\nturnover tax declarations will not be forwarded by NAV unless all the errors that\nemerge are corrected.<\/p>\n\n\n\n From 2020,\nit will be possible to post the local turnover tax declarations of the\ndifferent business premises directly to NAV.<\/p>\n\n\n\n From 1st<\/sup> January 2020<\/strong>, the short-term rental, in addition\nto restaurants, will be the subject of tourism improvement contribution. The\nrate will be 4% of the income realized.<\/strong><\/p>\n\n\n\n From 1st<\/sup>\nJanary, 2020 the excise duty of cigarettes will be 20.500.-HUF\/1000 pieces<\/strong>. Excise duty regarding to other tobacco products\nwill be 20.100.-HUF.<\/strong><\/p>\n\n\n\n The excise\nduty of cigarette will be raised from 1st<\/sup>\nJuly 2020 to 22.800.-HUF\/1000 pieces.<\/strong><\/p>\n\n\n\n E-cigarette\nliquids will be subjects of excise duty.<\/p>\n\n\n\n There will\nbe a completely new legislation regarding to the short-term rental activity.\nMini hotels should be registered at the National Tourist Data Exchange Center (NTAK\n\u2013 www.ntak.hu<\/a>). The use of a specialized software<\/strong> will also be\nmandatory.<\/p>\n\n\n\n VAT will be decreased to 5%<\/strong> from 2020, unfortunately in\nparallel, short-term rental will be the subject of tourism improvement contribution which will be 4%.<\/strong><\/p>\n\n\n\n The government\nalso introduced the term of private mini-hotel which is a minim hotel that is\noperated either by a private person or by a private enterprise. In this case,\nusually, there is no need to reclassify the property and to pay the parking\ncontribution fee.<\/p>\n\n\n\n If you have\nfurther questions or would like to request and inquiry, please feel free to\ncontact us.<\/p>\n\n\n\n Web: www.whisperingtree.hu<\/a><\/p>\n\n\n\n E-mail: whispeirngtreebt@gmail.com<\/a><\/p>\n\n\n\n Tel: +36\n20 548 4103<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Changes in accountancy\nregulation from 2020<\/h2>\n\n\n\n
Limited liability company founded\nby a private enterprise<\/h3>\n\n\n\n
Depreciation of the small\nvalue assets<\/h3>\n\n\n\n
Changes in the value added\ntax (VAT) from 2020<\/h2>\n\n\n\n
VAT choices due to\ntermination of EVA taxation system<\/h3>\n\n\n\n
Irrecoverable receivables\nin VAT legislation<\/h3>\n\n\n\n
VAT percentage of the\nshort-term rental activity<\/h3>\n\n\n\n
Expansion of the data\nsubmission of invoicing activity<\/h3>\n\n\n\n
Data indicated in the\ninvoice<\/h3>\n\n\n\n
Changes in corporate\nincome tax from 2020<\/h2>\n\n\n\n
The obligation of fill-up<\/h3>\n\n\n\n
Improvement tax allowance<\/h3>\n\n\n\n
Small taxpayers\u2019 tax\n(KIVA) changes from 2020<\/h2>\n\n\n\n
Changes in personal income\ntax (SZJA) from 2020<\/h2>\n\n\n\n
Tax allowance for mothers\nwith 4 or more children<\/h2>\n\n\n\n
Social security tax\nchanges from 2020<\/h2>\n\n\n\n
Social contribution tax<\/h3>\n\n\n\n
New unified social\nsecurity law from 1st<\/sup> July 2020<\/h3>\n\n\n\n
Merge of personal social\nsecurity contributions<\/h3>\n\n\n\n
Minimum basis of\ncontributions<\/h3>\n\n\n\n
Tax exemption of retired\npersons<\/h3>\n\n\n\n
Social security tax of engagements<\/h3>\n\n\n\n
Health contribution fee, invalidation\nof social security number (TAJ)<\/h3>\n\n\n\n
Minimum wage 2020<\/h2>\n\n\n\n
Changes in local taxes\nfrom 2020<\/h2>\n\n\n\n
Local turnover tax\ndeclaration<\/h3>\n\n\n\n
The tax declaration of the\ndifferent business addresses<\/h3>\n\n\n\n
Tourism Improvement Contribution<\/h2>\n\n\n\n
Changes of the excise duty\nfrom 2020<\/h2>\n\n\n\n
Cigarettes<\/h3>\n\n\n\n
E-cigarettes<\/h3>\n\n\n\n
Short-term rental\n(mini-hotel) activity from 2020<\/h2>\n\n\n\n
Contact<\/h2>\n\n\n\n