Tax returns in Hungary: the essentials

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Tax returns in Hungary: the essentials

If you live and work in Hungary, you must file tax returns in Hungary every year. With the 20 May deadline for filing your tax returns for the previous calendar year approaching, read a summary on the process and make sure you stay abreast of this topic and avoid unpleasant surprises.

Tax return drafts: a welcome innovation

For the past few years, the National Tax and Customs Administration (NAV) has prepared tax return drafts for private individuals, primary agricultural producers and freelancers. The draft includes all your taxable income (including simplified employment), simplified contribution to public revenues and social contribution tax as previously reported by your accountant or by the accountant of the company you work for. This means that you no longer have to fill in lengthy tax return forms field by field – neither in the official form handler program of the Tax Authority, nor on paper. Instead, you can simply check whether your draft is correct, make adjustments if needed, then accept it.

You should review these pre-made drafts carefully, because they are not always faultless and what you submit will be treated as your definitive tax return.

The draft is available through the tax section of the “Ügyfélkapu” e-administration portal. If you do not have Ügyfélkapu access, you can receive the draft and submit the definitive version via mail. In some cases, you may need to modify your tax return draft. For example, this can happen to private individuals who have to pay VAT and primary agricultural producers whose revenue exceeds the tax exemption threshold.

The timeline for filing your tax returns in Hungary

Here you can find the dates to keep in mind when filing your tax returns for the preceding year.

  • 1 February: the deadline for receiving the so-called M30 certificate, a breakdown of your income and taxes in the previous year.
  • 15 February: the deadline for receiving a certificate about your eligibility for the various kinds of tax allowance.
  • 15 March: the drafts are made available by the Tax Authority.
  • 15 April: the deadline for requesting to have your tax return draft mailed to you.
  • 30 April: the deadline for requesting exemption from filing a tax return if you have foreign tax residency, and also for the Tax Authority to notify you about any taxes to be paid or reclaimed.
  • 20 May: the deadline for filing your tax returns, donating 1+1% of your income tax, and paying your taxes.

Tax benefit for mothers raising four or more children

As we have mentioned above, several types of tax benefit are available in Hungary. For example, a recent change in legislation grants a tax benefit for mothers raising four or more children who fulfill one of the following two conditions:

  • They are currently eligible for family allowance
  • They are no longer eligible for family allowance, but they have been for at least 12 years

Mothers who meet the conditions do not need to pay income tax after their salary, entrepreneurial withdrawals and sick pay. The tax benefit of mothers raising four or more children is different from the family tax benefit, which applies to different sources of income. Although the tax benefit of mothers raising four or more children can reduce your income tax to zero, you still must file a tax return.

Tax return troubles? Contact us!

The deadline for filing your tax returns in Hungary is 20 May, so you are still in time to check everything and consult an expert if needed. Make sure to donate your 1+1% too!

If you need assistance, contact the English-speaking accountants of Helpers Finance. You can learn more about our accounting services here. You can ask for a consultation by calling our office on +36 1 215 0712, by e-mailing info@helpersfinance.hu or by filling in our contact form.

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