KPMG Global (04.05.2020) Modified social security contribution rules shall be applied for the period of March-June 2020 to the specified sectors (Hospitality and tourism; Entertainment, film industry, performing arts; Sports services; Event organization; Gambling).
- Employers will not be liable to pay their part of social security contributions (17.5%+1.5%) with respect to employment income provided by them in the March-June 2020 period, from 1 July this rate will be set at 15.5%.
- Employees will only be liable to pay 4% healthcare social security contribution on the employment income received in the March-June 2020 period, instead of the aggregated 18.5% social security contribution. Nevertheless, the upper limit of the above healthcare social security contribution will be HUF 7,710/month.
Social security contribution exemption/reduction shall be applied for the period of March-June 2020 to the specified sectors such as Hospitality and tourism, Entertainment, etc. Employers will not be liable to pay their part of social security contributions (17.5%+1.5%) during the period, while Employees will only be liable to pay 4% healthcare social security contribution instead of the aggregated 18.5% social security contribution.
Date accurate as of: 4 May 2020
On March 18, 2020, the Hungarian Government introduced amendments to Hungarian tax and social security law as a response to the economic effects of the coronavirus outbreak. Key measures include:
Social security
- Modified social security rules shall be applied for the period of March-June 2020 to the following sectors:
- Hospitality and tourism;
- Entertainment, film industry, performing arts;
- Sports services;
- Event organization;
- Gambling.
- The rules for social security contributions in the above sectors have been amended as follows:
- Employers will not be liable to pay their part of social security contributions (17.5%+1.5%) with respect to employment income provided by them in the March-June 2020 period, from 1 July this rate will be set at 15.5%.
- Employees will only be liable to pay 4% healthcare social security contribution on the employment income received in the March-June 2020 period, instead of the aggregated 18.5% social security contribution. Nevertheless, the upper limit of the above healthcare social security contribution will be HUF 7,710/month. It should be noted that personal income tax will be still payable.
- There are changes to the threshold amounts for the taxation of fringe benefits.
- The measures regarding the support provided to employers in the research and development (R&D) sector are amended.