What can we do to avoid exclusion from the database of debt-free taxpayers (Hungarian term: KOMA) in Hungary if our company is unable to meet tax return and tax payment obligations due to the emergency?
KOMA database is handled by the Hungarian Tax authority and it includes those taxpayers who are classified debt-free. The list is available on the Hungarian webpage of the Tax Authority under Adatbázisok/Köztartozásmentes adózók.
It worth for all companies to be included in the database because if the law requires the submission of a tax certificate, inclusion in the database proves that they are free of debt and also in other cases, depending on the user’s decision, replace the tax certificate.
Since the database is available to anyone, the company can verify with it its financial reliability to the business partners.
In order to be included in the database, the company should apply to the Tax Authority on the KOMA form which can be downloaded from the electronic tax return system (ÁNYK). In the case of private entrepreneurs, both the private and the business tax ID number is needed for the application. In addition, the company must declare on this form that the tax return and payment obligation due by the last day of the month preceding the publication of KOMA will be or have already been fulfilled.
Only taxpayers who meet the following criteria may be included in the database:
- has no net tax debt registered by the Tax Authority,
- based on declaration all the tax return and payment obligations will be or have already been fulfilled,
- there is no bankruptcy, liquidation or compulsory liquidation process in place,
- in the case of taxpayer groups, the group corporate taxpayer has no corporate income tax liability
- has no overdue tax debts.
If the Authority determines that the taxpayer does not meet one of the conditions, the deficiency should be supplied within 10 days. If all the conditions are met and deficiencies were submitted, the taxpayer will be included in the KOMA database on the 10th day of the following month. If conditions are not met, the Tax Authority refuses the application.
The database is updated by the Tax authority on the 10th of every month. If the taxpayer no longer meets any of the conditions, it will be deleted from the database. The authority sends a notification about the deletion, after this the taxpayer can apply again. However, if the taxpayer doesn’t agree with the decision, it can submit remarks which the authority is obliged to investigate. If tax deficiency is discovered and the taxpayer settles his debt by the due date, he can continue to be included in KOMA’s system.
In view of the emergency declared in connection with the spread of the coronavirus, if taxpayers are unable to meet their payment obligations through no fault of their own, due to the economic consequences of the epidemic or the emergency, they can easily lose their right to be classified tax-free. That is why it is important to ask for tax payment relief (deferred payment, payment in arrears, tax reduction or release) from the Tax Authority as soon as difficulties arise.
If by the due date, the company receives a final decision granting installments or deferred payment approved by the authority, then it can remain in KOMA database provided that other conditions are still met.
If you need help preparing and submitting a tax payment relief request, please feel free to contact our consultants on [email protected]!
You can read more about the other accounting, bookkeeping and payroll pitfalls caused by the coronavirus here.
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