Govʼt measures to leave HUF 200 bln with businesses, households

Banking

Alexandros Michailidis / Shutterstock.com

Finance Minister Mihály Varga on Thursday detailed government measures to mitigate the economic impact of the coronavirus pandemic that will save businesses and households some HUF 200 billion, state news wire MTI reports.

Mihály Varga (Image by Alexandros Michailidis / Shutterstock.com)

A reduction in the payroll tax from 17.5% to 15.5% from July, the result of an earlier agreement between unions, employers and the government, will save companies HUF 160 bln, Varga said in a video posted on his Facebook page.

He said companies whose businesses are suffering because of the pandemic may apply for up to HUF 5 million in tax deferrals.

All companies currently classified as "dependable taxpayers" will retain their status, he added.

Commercial accommodations will be exempt from the tourism tax until the end of 2020, Varga said. At the same time, the central government will continue to pay support to local councils as it would if revenue from the tax were being generated, he added.

A reduction in the rate of the Small Business Tax (KIVA) from 12% to 11% from next year will save more than 50,000 businesses a combined HUF 10 bln, he said.

The deadline for some 600,000 companies to file reports and pay corporate tax and local business tax will be pushed back to September 30, Varga said.

The new deadline will not apply to listed companies, banks, insurers or investment companies, he added.

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