PROVISIONS RELATING TO THE TEMPORARY STRICTENING OF SECURITY MEASURES

Under a temporary strictening of previous safety measures, many shops and businesses providing services requiring personal presence will have to close for two weeks from 8 March 2021. In order to mitigate the loss of revenue for these businesses, the number of operators who can benefit from the benefits previously granted to the catering and hotel services sector, among others, has been extended.

Under the government's decision, for the month of March 2021, tax relief and wage subsidies will be granted for companies operating with the following main activities

  • Retail sale in specialised stores (TEÁOR 4719) activity,
  • Retail sale of audio and video equipment in specialised stores (TEÁOR 4743) activity,
  • Retail trade in textiles (TEÁOR 4751) activity,
  • Retail trade services of electrical household appliances (TEÁOR 4754) activity,
  • Retail sale of furniture, lighting equipment and other household articles in specialised stores (TEÁOR 4759) activity,
  • Book retailing (TEÁOR 4761) activity,
  • Retail sale of stationery in specialised stores (TEÁOR 476203) activity,
  • Retail sale of music and video recording in specialised stores (TEÁOR 4763) activity,
  • Retail sale of sports equipment (TEÁOR 4764) activity,
  • Toy retail (TEÁOR 4765) activity,
  • Retail sale of clothing (TEÁOR 4771) activity,
  • Retail sale of footwear and leather goods (TEÁOR 4772) activity,
  • Watch, clock and jewellery retail trade (TEÁOR 4777) activity,
  • Retail sale of other new goods n.e.c. (TEÁOR 4778) activity,
  • Retail sale of second-hand goods in stores (TEÁOR 4779) activity,
  • Videotape, disc rental (TEÁOR 7722) activity,
  • Lending of other household articles for personal use (TEÁOR 7729) activity,
  • Other reservations (TEÁOR 7990) activity,
  • Gambling and betting activities (TEÁOR 9200), except lotteries and games of chance,
  • Repair of consumer electronics (TEÁOR 9521) activity,
  • Repair of footwear and other articles of leather (TEÁOR 9523) activity,
  • Repair of furniture and home furnishings (TEÁOR 9524) activity,
  • Watch and jewellery repair (TEÁOR 9525) activity,
  • Repair of other personal and household goods (TEÁOR 9529) activity,
  • Hairdressing and beauty treatment (TEÁOR 9602) activity,
  • Other personal service activities n.e.c. (TEÁOR 9609) activity,
  • Flower, wreath and ornamental plant retail trade (TEÁOR 477601) activity,
  • For enterprises operating in an educational establishment other catering activities (TEÁOR 5629) activity,
  • Driving instruction (TEÁOR 8553) activity,
  • Other education n.e.c. (TEÁOR 8559) or
  • Educational support service activities (TEÁOR 8560) activity.

The effective main activity is the activity from which the company or small business taxpayer derived most of its income, but at least 30% of its income, in the six months preceding 11 November 2020, when the Government Decree on certain economic protection measures entered into force.


Tax payment reduction:

The taxpayer carrying out this activity is not required to pay social contribution tax for the month of March in respect of the natural person employed.  

In addition, neither the self-employed person nor the partner will have to pay social contribution tax for the month of March in respect of these activities in view of their status. In addition, the vocational training contribution and the rehabilitation contribution are also not to be paid for this month.

In order to qualify for the tax reduction, the company must already be in compliance with its wage payment obligations under the employment contract at the time of the entry into force of the Government Decree on certain economic protection measures (11 November 2020).


Wage subsidies:

Under the current rules, enterprises carrying out the above-mentioned activities as their main activity may receive wage subsidies for the month of March 2021, up to 50% of the gross wages of the employees in employment, up to a maximum of HUF 251,100 gross per month, provided that

- the worker's employment is not terminated by notice of termination or by mutual agreement before the end of the month following the last day of the period for which the allowance is granted, and

- the employer pays the salary to the worker.

The subsidy is paid to the employer on the basis of the wages actually paid and the tax and contributions deducted from the employee's pay subsequently. Employers whose main activity is actually carried out under the TEÁOR codes listed above may submit applications from 8 March 2021 to 31 March 2021 on the basis of the gross salary shown in the employment contract in force on 5 March 2021.

The application can be submitted to the municipal government office where the employer has its registered office or place of business. The government office will issue its decision within 8 days.

Rent:

Those carrying out the activities listed above will not have to pay rent in March for state-owned or municipally-owned property. Rent already paid must be repaid by 16 March.

Tax of small taxpayers:

Small taxpayers that carry out any of the exempted activities listed in Government Decree No 485/2020 (XI.10.) on economic protection measures will be exempt from paying tax for the month of March 2021. This provision may be applied by small taxable businesses that were already small taxable businesses in respect of these activities in the month of February 2021.

Small business taxpayers whose main activity is an activity in the vulnerable sector https://nav.gov.hu/nav/segitseg_rendkivuli_helyzetben/adozasi_konnyitesek/Marciusra_is_ervenyes20210302.html

 will not have to take into account the amount of personal payments when calculating their kiva liability in March 2021, so it will not be part of the kiva base.