Similar to the first and second wave of the pandemic, the Hungarian Ministry of Finance and the National Tax and Customs Administration are trying to help companies affected by the pandemic.
Tax also has to be paid when submitting an extension request
The special tax relief implemented in the third wave of the coronavirus will affect the deadline for certain tax returns and annual reports at companies which, through no fault of their own, cannot comply with their obligations by the original deadline, i.e. 31 May, due to the pandemic.
Companies and organisations missing the deadline of 31 May can only be exempt from the default penalty if they submit their extension requests containing pandemic-related reasons to the National Tax and Customs Administration by 30 June. The extension request can exempt you in Hungary from the legal consequences for failing to submit four types of tax return and financial statements as well as to prepare transfer price documentation on time.
Parallel to submitting the extension request, it is important that the missed tax returns must also be submitted and the corporate tax as well as the small business tax, the innovation contribution and the income tax on energy providers must be paid simultaneously, or any payment difficulties must be reported.
Circumstances to be considered
Submitting an extension request does not necessarily mean it will also be accepted, but the National Tax and Customs Administration has promised to assess these requests quickly and fairly, qualifying reasons derived from the coronavirus pandemic as particularly justifiable circumstances. It is worth knowing that since members’ meetings or general meetings can even be convened online in an emergency, without personal attendance, not holding them does not necessarily represent a circumstance that can be taken into consideration.
The relief does not apply to public-interest entities such as listed companies, banks, insurance companies and investment firms.
WTS Klient Hungary is continually trying to keep its clients updated regarding the economic measures taken due to the coronavirus pandemic. If you have any questions on how these measures will impact your business, feel free to contact us.
