We would like to briefly inform you about tax changes related to personal income tax and contributions in year 2022.
Changes of taxation 2022
minimum wage: HUF 200.000 (gross)
guaranteed minimum wage: HUF 260.000 (gross)
Social contribution tax
The scale of social contribution tax will be 13%.
Social contribution should be paid after the following payments:
- Fringe benefit
- Certain defined benefits which are not qualifying as fringe benefit
- Income from interest on loans
- Income extracted from the company
- Income from securities lending
- Entrepreneurial dividend base
- Income from exchange gains
Contribution to vocational training
From 1st of January 2022, the 1.5% vocational training contribution will end.
Health service contribution
The amount is 8.400 HUF/month (280 HUF daily) which has to be paid by the natural person after the time he/she spends outside of an ensured legal relationship.
The tax authority informs the individual in 8 days, if he/she will have an obligation to pay the health service contribution, because of the termination of the insurance legal relationship or of the eligibility for health service. If it is in excess of the amount of 3 months, then the individual’s social security card becomes invalid, and the person supported by social security cannot use the health services free of charge only if he/she reimburse the debt.
Personal income tax exemption under the age 25
An individual under the age of 25 (hereinafter: young person) may consider the income earned from work as a tax-deductible benefit up to a certain value limit, if his/her monthly income does not exceed 401.800 HUF gross (the amount of average income in July 2021).
If the young person's income exceeds the average earnings, then the Personal income tax has to be paid only after the difference.
The discount is valid for the months before the young person has reached the age of 25.
Small business tax
Small business tax rate drops to 10% (previous year was 11%).
Simplified public contributions
The rate of the simplified public contribution, paid by the payer, is reduced to 13%.
Until 30th of September 2022 the possibility of interoperability between the SZÉP card sub-pockets was extended, according to which the service provider differs from the acceptance agreement of the Széchenyi Pihenő Card - accept the balance on any sub-account, or the cardholder may use it.
From 1st of January 2022, the annual recreational budget for all employers will be 450.000 HUF
- for accommodation sub-accounts up to HUF 225.000 per year,
- for the hospitality sub-account up to HUF 150.000 per year,
- for leisure sub-account up to HUF 75.000 per year.
HAS NOT CHANGED
Personal income tax
Tax rate is uniformly 15%, which is applicable not only for income included in the consolidated tax base, but income acquired by every other legal title (e.g. interest, dividend, property sale).
From 01.01.2020 those mothers who were entitled to family allowance after 4 children (for at least 12 years) will exempt from the payment of personal income tax (after the labour income) lifelong, regardless of how old the children are.
Family tax reliefs
The tax base reducing tax relief can be claimed without an income limit
- in case of one child HUF 66,670
- in case of two children HUF 133,330
- in case of three or more children HUF 220,000 after every dependent child
Tax reliefs for those who get married for the first time
Tax base reducing tax relief is HUF 33,335 /month. One is entitled for this from the first day of the following month of the wedding, through 24 months.
Personal tax reliefs
The scope of personal benefits will be changed, according to which the tax benefit currently available up to 5% of the minimum wage will be taken into account next year as a discount reducing the consolidated tax base up to one third of the minimum wage. The PIT savings are expected to be HUF 10.000 per month (a possible increase in the minimum wage may also affect this), so the amount of the discount will not change, only the method of validation.
A person with a severe disability should still be considered who is suffering from an illness listed in Government Decree 335/2009 on severely disabled diseases and receives an invalidity allowance or disability allowance for the benefit of the consolidated tax base. The discount can be enforced on the basis of a medical certificate or a decision on disability benefits and disability benefits.
Order of application of tax benefits
- the first is the discount for mothers raising four or more children
- Personal income tax exemption for under the age 25
- personal discount
- discount for first married couples
- family discount.
Certain determined benefits
After the 1.18 times multiplied amount of these benefits the employer also has a 15% personal income tax, 13% Social Contribution Tax.
- The part of Széchenyi card which is above the limit
- Gift voucher 1 time/year up to 10% of the minimum wage (maximum HUF 20,000)
- Employer contribution transferred to voluntary pension fund
- Employer contribution transferred to voluntary health fund
- Taxable income given by the employer based on meals or other services related to business travel
- After 20% of company mobile phone usage
- Such taxable income given through free or discount goods, services, for which more than one individual is entitled at the same time and the employer cannot determine the acquired income of the individuals. Furthermore, incurred costs related to free events, organized for more than one individual (including business partners too), if it is ascertainable from the circumstances of the benefit, that it is predominantly aimed for catering, leisure program (coffee, tea, juice consumption of own employees is also included) (Point b.) of Article 3. of 70§ of Personal Income Tax).
Tax free benefits
- Safety glasses benefit
- Cost of kindergarten, nursery
- Ticket for sports events and Cultural services up to the amount of the minimum wage
- Commuting to work by own car maximum 15 HUF/km
Budapest, 5 January 2022
Takács Gabriella HR advisor
Gubicza Krisztina chartered tax expert