Page 1 - 20140114_PS-Newsletter_On-Changes-of-Taxation

PS Newsletter

14 January 2014

On changes of taxation

Contents In the same time, tax benefits combined from voluntary
I Personal income tax ........................................................1 mutual funds, retirement savings, and pension insurance
II Social security .................................................................2 will be capped at HUF 280,000.
III Corporate income tax ......................................................3 As a new regulation, tax allowance will be available for
IV Value added tax ...............................................................3 the premiums paid under pension insurance policies. The
V Local tax ..........................................................................4 amount of the tax allowance – to be credited to the taxpay-
VI Stamp duties ....................................................................4 er’s account held with the insurance company – will be 20%
of the insurance premium paid by the policyholder, capped
VII Rules of taxation .............................................................5 at HUF 130,000. This allowance can only be claimed for
VIII Green tax .........................................................................6 insurance policies issued after 31 December 2013.
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IX Special tax of financial institutions ...................................6
X Accounting rules ..............................................................6 Prior year’s payments
XI Other ................................................................................6 Revenues and benefits from employment paid out until
10 January the following year but pertaining to the prior
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year shall be recognised as income in the prior year. Pre-
I Personal income tax viously, the cut-off date was defined as 15 January.
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Simplified contribution to public revenues
Vouchers
The tax scheme of simplified contribution to public reve-
The modification provides a more specific definition for nues will be made available to a wider range of individu-
voucher and excludes redeemable vouchers from the als engaged in sport activities
category of both non-wage benefits and specific defined Unimplemented proposals
benefits. This change does not effect the return of undis-
tributed vouchers. Regulations relating to the translation of income and
expense denominated in foreign currency have not been
Tax exempt in-kind benefits simplified. As before, the official foreign exchange rate
From 1 January 2014 single game or season tickets for quoted by the Central Bank of Hungary in effect on the
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sport events subject to the Act on Sports can be granted 15 of the month prior to the date of obtaining the income
shall be used.
tax exempt by employers to individuals, without any limi-
tation. (Previously only organizers of sport events were It remains optional for Hungarian companies to act as
allowed to grant tickets under such favourable condi- employers in respect to the revenues granted to their
employees by another entity (e.g. foreign parent com-
tions.) pany). According to former plans, they would have been
The limit of HUF 50,000 valid for cultural services compelled to act as employers in such situations.
remains in force.
Individual pension fund and insurance
payments
The tax benefit on voluntary mutual pension fund pay-
ments has been increased. The amount of benefit that
can be credited to the pension fund account of the indi- We Solve Accounting Problems
vidual will go to HUF 150,000 from HUF 130,000. www.ps-bpo.com