Deferred payment and payment by instalments of outstanding tax

In addition to the deferred payment, payment by instalments and automatic payment by instalments for natural persons which is regulated in the Act XCII of 2003 on the Rules of Taxation (hereinafter referred to as Art), according to the Government Decree published on 9 June 2021, the tax authority may, upon application by both legal entities and natural persons, grant a single deferral of payment of up to six months or an instalment of up to twelve months without surcharge for tax up to HUF 5 million registered with the tax authority, if the applicant proves or demonstrates at the same time as submitting the application that the payment difficulty is due to the emergency situation.

According to Art. in case of the legal entities, the tax authority may only reduce or waive fines and surcharges liabilities.

This regulation is eased by the Government Decree to the extent that the tax authority may, at the request of a taxpayer who is not a natural person, reduce the tax debt owed by them in respect of a taxable amount by a maximum of twenty percent, but not exceeding HUF 5 million, on one occasion.

Such reduction is possible if the payment of the tax debt would make the applicant's business activity impossible for reasons attributable to the emergency.

However, it is important to note that it is not possible to allow the two types of relief together.

Both types of application can be submitted until 31 December 2021 under the general rules, with a deadline of 15 days.