Factsheet for case HU-2020-18/710 – measures in Hungary
|Country||Hungary , applies nationwide|
|Time period||Temporary, 01 May 2020 – 31 December 2020|
|Type||Legislations or other statutory regulations|
Measures to prevent social hardship
|Author||Nóra Krokovay (KOPINT-Tárki) and Eurofound|
|Case created||16 April 2020 (updated 01 May 2020)|
Under government decrees 108/2020 (banks) and 109/2020 (retail), large companies in these two sectors must pay a mandatory contribution to the country’s COVID-19 defence efforts. The contributions will be paid in three equal parts in June, September and December 2020 using the companies’ deductible tax base from 2019 to calculate the amount of their contribution in different rate bands. The COVID Defence Fund’s planned expenditures are listed in govt decree 92/2020.
In the retail sector, no contribution must be paid below a tax base of HUF 500 million (€1.40 million). From a tax base of HUF 500 million to – 30 billion €84.5 million) the contribution is 0.1%, from HUF 30 billion to 100 billion (€281.5 million) it is 0.4% and above HUF 100 billion it is 2.5%. For banks the contribution is 0.19% of the tax base if it was above HUF 50 billion in 2019. The pandemic contribution can be deducted from tax gradually over five years after the state of emergency is lifted. Retailers can ask for an exemption if their revenues fall by more than 40%. The government expects to collect HUF 55 billion (€155 million) from the financial sector and HUF 36 billion €101 million) from the retail sector.
The government has said it would use the COVID Defence Fund adding up to HUF 533 billion (€1.52m) in total, including other state sources, for procurement of supplies and investments, an earlier-decided increase in healthcare workersʼ salaries, and a one-off HUF 500,000 per month (€1,408) health-care workers' bonus.
|Does not apply to workers||
Sector specific set of companies
|Does not apply to citizens|
Company / Companies
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
Social partners' role in the implementation, monitoring and assessment phase:
The Banking Association was consulted before adopting the measure. The National Trade Association (OKSZ) was informed.
|Economic area||Sector (NACE level 2)|
|G - Wholesale And Retail Trade; Repair Of Motor Vehicles And Motorcycles||G46 Wholesale trade, except of motor vehicles and motorcycles|
|G47 Retail trade, except of motor vehicles and motorcycles|
|K - Financial And Insurance Activities||K64 Financial service activities, except insurance and pension funding|
This case is not occupation-specific.
Eurofound (2020), Mandatory contribution to COVID-19 defence fund from banking and retail sectors, case HU-2020-18/710 (measures in Hungary), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.