This is how we will be taxed in 2022 | 24.hu

The government estimates that the largest tax cut in the history of the Hungarian economy will follow in early 2022, costing the budget a total of HUF 1,500 billion. Viktor Orban The Prime Minister also flashed at his last Government briefing before Christmas that further tax cuts were expected until the election, but did not reveal what taxes were involved.

The tax laws were amended in two installments, in early summer and in the fall, and our article summarizes the main changes for 2022.

The personal income tax rate will not change in 2022, remaining at 15 percent, meaning that single-digit PIT is still out of the agenda. What is new, however, is that:

  • Those under the age of 25 will receive a PIT exemption from the average salary from January, with which they can win up to HUF 780,000 a year. The tax exemption is valid until the month they reach the age of 25.
  • In families with children, parents can get back the personal income tax they actually paid in 2021, up to a maximum of HUF 809,000 per person. The tax refund also applies to echoes. The PIT refund will be issued either by NAV by February 15, 2022 (if available) or by May 20 in the tax return. Cats raising children could get back a quarter of their tax paid in 2022.
  • Mothers raising four or more children will not be required to file a tax advance statement each year to claim the benefit.
  • The rules of flat-rate taxation will be more favorable for companies, for example, at a flat rate of 40%, no PIT is required to pay up to HUF 2 million a year, and at a flat rate of 80%, the PIT exemption can be up to HUF 6 million.
  • The private use of a bicycle provided by a payer (employer) to a private individual, including a bicycle assisted by a motor with a power of up to 300 W, becomes exempt.
  • If the individual does not complete the draft return prepared by NAV and it also includes the voluntary fund contributions, the 20 percent tax refund will be applied to these payments based on the draft that becomes the return.
  • Income earned in cryptocurrencies is considered a separate taxable income, PIT must be paid afterwards, but the costs are also eligible.
Balázs Ivándi-Szabó / 24.hu

There will be a total reduction of 4% in the public burden on employers, which consists of two items:

  • The 1.5% vocational training contribution will be abolished,
  • and the social contribution tax will be reduced by 2.5 percent, so in 2022 the tax rate will be only 13 percent.

There will be changes to the tax burden of benefits (in addition to the use of bicycles mentioned above) with the Széchenyi rest card. Based on currently known rules:

  • from January 1, the lower limits will be restored. In the business sector, HUF 225 thousand can be spent on the sub-account of accommodation, HUF 150 thousand on hospitality, and HUF 75 thousand on leisure, ie a total of HUF 450 thousand, with reduced taxation. In the public sector, the budget with a reduced tax will be HUF 200,000 again.
  • In addition to PIT (15 per cent), social contribution tax (13 per cent) is again payable on the reduced-tax benefit part.
  • On December 23, Viktor Orbán announced on his Facebook page that food could be purchased with the SZÉP card from February, and that it would also be possible to pay with the SZÉP card in stores. According to a government decree of December 24, this option will be available for the time being until May 31, from the pocket of hospitality.
  • According to another government decree of 24 December, the interoperability between the pockets and sub-accounts of the SZÉP card will not remain until 30 September, but it has been extended until 31 December 2022.

Due to the reduction of the social contribution tax, the benefit base for full-time catastrophes will change, and in 2022 it will be lower than the minimum wage even with the higher monthly tax (HUF 75,000). With the payment of a monthly tax of HUF 50,000, the benefit fund will increase to HUF 108,000, and with the payment of a monthly tax of HUF 75,000, to HUF 179,000.

Special taxes

  • From 2022, the special tax liability of financial institutions for venture capital fund managers, stock exchange and commodity exchange service providers will be abolished.
  • Retail companies with an annual turnover of over HUF 100 billion have so far had to pay a special tax of 2.5 percent, but the burden will increase to 2.7 percent from February 1.

Local taxes

  • The benefit of small and medium-sized enterprises in the local business tax has been extended, so in 2022 the tax rate for those affected will automatically be lower, up to one percent.
  • It is still valid that the local tax ordinance or municipal tax ordinance, which means an increase in the tax rate or a reduction in tax benefits, does not apply.
  • It will not be possible to introduce a new, non-existent local tax or municipal tax in 2022 either.

The general sales tax also does not change the tax rate, the general rate in Europe remains a record 27 percent. The various VAT reduction efforts and lobbies in 2021 were unsuccessful, and no VAT reduction is known in 2022.

  • Businesses can claim a refund of their bad debt (under a so-called special procedure) under certain conditions.
  • Residents established in the United Kingdom continue to be eligible for a refund of VAT charged domestically.
Daniel LEAL / AFP Passengers arrive at London Heathrow Airport.

Other changes

  • The small business tax rate will be reduced from 11 to 10 percent.
  • Businesses can only register with a registered service provider that is listed in the NAV register. If the company does not comply with this, NAV can delete its tax number.
  • The daily amount of the delay and self-check surcharge must be determined by NAV to three decimal places, leaving no further decimals.
  • If the tax enforcement is suspended, NAV may not carry out another enforcement for the same amount during the period of the decision.
  • From 1 February 2022, under the current conditions, it will not be possible to take advantage of the tax base allowance for the construction of electric charging stations.
  • Energy suppliers can deduct their losses from their pre-tax profit for the next 5 tax years.

Source

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