1. Payment moratorium on loans, credit and financial lease agreements

Payment moratorium for the redemption of capital, interest payment and other fees on all loan, credit contracts and financial lease agreements already in place at midnight 18 March 2020, was introduced.

The payment moratorium lasts until 31 December 2020 but can be extended by the government.

The moratorium concerns the agreements based on which the loan/credit paid based on the agreements concerned

2. Capping the annual percentage rate of charge on consumption loans

In case of new consumption loans with the starting date of 19 March 2020 the annual percentage rate of charge (APR) cannot be higher than the base rate of the Hungarian National Bank +5%

3. Measures concerning certain companies in the tourism, hospitality, entertainment, gambling, cinema, performing arts, event organizing and sports services sectors

Rental contracts in the tourism, hospitality, entertainment, gambling, cinema, performing arts, event organizing and sports services sectors shall not be terminated before 30 June 2020. The prohibition may be extended by the government until the end of the emergency period. The rental fee for such contracts can also not be increased during the emergency period

In the tourism, hospitality, entertainment, gambling, cinema, performing arts, event organizing and sports services sectors, for the months March, April, May and June 2020 the employers are exempted from the payment of all employment taxes and contributions concerning the months March, April, May, June 2020

The in-nature health care service contribution fee of the employees is capped in the HUF 7,710.

The declaration and payment of the tourism development contribution is suspended for the period 1 March 2020 and 30 June 2020

The specification of which companies fall under the new measures is expected to be followed.

4. Waiving of tax payment obligation for companies carrying out passenger transport services

Small taxpayers carrying passenger transport services (e.g. taxis) under the KATA taxation regime are exempted from their tax liability for the months March, April, May and June 2020.

5. Labor law measures

By deviating from the Hungarian Employers Act the employers are entitled to unilaterally instruct the employees concerning home office, distance working, they are entitled to implement necessary and reasoned actions in the sake of the health safety situation of the employees. The employees and employer are entitled to deviate from the application of the Hungarian Employers Act in their bilateral agreements

6. Further actions concerning payment facilities

In addition to the aforementioned measures published in the government regulation, there are some for their payment reliefs already existing in the relevant law that affect the application of payment facilities. Taxpayers shall apply for these possibilities.

The payment facility has to be applied for on an individual basis, for the moment, there is no overall payment facility for taxpayers. The Hungarian tax authority will handle these applications on an affair basis.

The payment facilities respectively affect all types of taxes, including e.g. corporate income tax, local business tax, social contribution tax, personal income tax.

The deadline for submission of tax returns and tax payment is not extended.

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