In the following we would like to briefly inform you about the tax changes related to the personal income tax and contributions valid from 01.07.2021.
Changes in taxes and social contributions from 01.07.2021
It is still possible to transfer a higher amount of recreational budget to the SZÉP Card with favourable conditions of taxation in the second half of the year.
This means that, with the mentioned preferential conditions, the annual amount of the fringe benefits employers can give their employees shall be HUF 400 thousand in the case of budgetary institutions and HUF 800 thousand in the case of all other employers.
The budget amounts remain the same in the entire year. The maximum amounts that shall qualify as fringe benefits are as follows:
- benefits transferable to the accommodation sub-account: maximum HUF 400 thousand per year,
- benefits transferable to the hospitality sub-account: maximum HUF 265 thousand per year,
- benefits transferable to the leisure sub-account: maximum HUF 135 thousand per year.
The basis of assessment for the social contribution tax payable after entrepreneurs
From 1st July 2021 the basis of assessment for the social contribution tax of entrepreneurs performing activities that do not require secondary qualification shall be calculated on the basis of the amount of the minimum wage valid on the first day of the relevant month as a minimum. Previously, the minimum wage valid on the first day of the relevant year had to be considered in the case of these entrepreneurs.
There is no change if the main activity of the co-entrepreneur or the main activity performed personally by the individual entrepreneur requires at least a secondary qualification or secondary vocational qualification. In that case, the minimum wage shall be understood as the monthly amount of the guaranteed minimum wage for full-time work valid on the first day of the relevant month, as previously.
Exemption from the social contribution tax
The benefit offered in the form of the SZÉP Card, considered a fringe benefit, shall be exempt from the social contribution tax until 31st December 2021; thus the employer has to pay only the 15% personal income tax on the benefits that do not exceed the maximum sub-account amounts or the recreational budget.
The payer does not have to pay social contribution tax after the fees paid for the employment of apprentices. This rule can be applied to the income paid from 10th June 2021.
Similarly starting from 10th June 2021 the taxation of entertainment and business gifts offered during the rest of the year will become more favourable. Only the 15% personal income tax will have to be paid after 1.18 times the value of these products, services or vouchers given to business partners but not the 15.5% social contribution tax.
CSED (infant care allowance)
From 1st July 2021 the amount of the CSED shall be 100% of the calendar day income instead of the presently valid 70%.