Tax relief for fringe benefits paid to SZÉP cards

According to the amendment, the social contribution tax exemption on fringe benefits paid to SZÉP cards, the Széchenyi Rest Cards, introduced as part of the spring tax relief package, will be extended for another six months. This means that until 30 June 2021 employers do not have to pay social contribution tax on fringe benefits paid to SZÉP cards if the benefit does not exceed the recreational allowance threshold specified by law.

Furthermore, the amendment upholds the annual allowance increased in the spring with regard to fringe benefits paid to SZÉP cards. For employers not qualifying as budgetary organisations, this means a limit of HUF 800,000 (roughly EUR 2,200) from which HUF 400,000 (roughly EUR 1,100) can be transferred to the accommodation sub-account, HUF 265,000 (roughly EUR 740) to the catering sub-account, and HUF 135,000 (roughly EUR 380) to the leisure sub-account.

New rules regarding share acquisition of foreign investors

Besides the social contribution tax exemption and the extension of the raised allowance for fringe benefits paid to SZÉP cards, another important element of the amendments is the extension of the reporting obligation until 30 June 2021 in legal transactions as specified by law concerning the acquisition of shares in strategic companies by foreign investors.

Legal transactions concluded between a foreign-registered legal entity and its related company appear as a new element among exemptions from the reporting obligation, meaning no reporting obligation applies in these cases.

Change in insolvency proceedings

With insolvency proceedings it is important to highlight that until 31 December 2020, a creditor may file a request to open liquidation proceedings against a debtor on grounds of an overdue and uncontested contractual debt if the final deadline permitted in the payment reminder sent to the debtor and the following 75 days have elapsed without repayment. This way the amendment provides for a substantial extension of the enforceability of a payment request through liquidation proceedings.

If you have any questions regarding fringe benefits paid to SZÉP cards or any other element of the amendment, our tax experts are here to help.

A New rules for fringe benefits paid to SZÉP cards still valid for another six months bejegyzés először WTS Klient Hungary | tax | accounting | payroll | advisory | HR services | digital solutions | state aid-én jelent meg.