There is some good news for the companies: the taxation of the SZÉP (Széchenyi recreation) Card benefits provided by the employer will remain favorable until the first half of 2021.
In Nr. 231 of Hungarian Gazette – available from the 27th of October – new rules were published about determining and modifying the measurements due to the pandemic. According to the accepted law, the favorable taxation of the SZÉP card will be active until 30th of June 2021.
The modification of paragraph 40 of LVIII. 2020 says that the social contribution tax does not need to be paid on the amount of the SZÉP card until the 30th of June 2021. It means that instead of the previous 32,5% tax burden, only the 15% personal income tax must be paid from the Employer’s side.
Between 1st of January 2021 and 30th of June 2021 the yearly limit continues with 800.000 HUF (in case of financial institutions: 400.000 HUF) limit, with the following numbers:
+ 400.000 HUF for accommodation sub-account
+ 265.000 HUF for hospitality sub-account
+ 135.000 HUF for leisure sub-account
If the Employer transfers more than the limited favorable amount, it is still taxable as a defined benefit. In this case, the social contribution tax (15,5%) is needed to be calculated too, with the 1,18 times base.
According to the expected tax changes, the limit of 450.000 HUF will remain from July 2021.
As we wrote before, the legislative proposal would abolish the difference between the so-called recreational limit amounts of fringe benefits provided by budgetary authorities and other employers. As of 1 July 2021, the limit will be HUF 450 000 for all employers, and any provided benefit exceeding such amount shall be regarded as a certain, specified benefit.