Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure HU-2020-18/710 – measures in Hungary
Country | Hungary , applies nationwide |
Time period | Temporary, 01 May 2020 – 31 December 2020 |
Context | COVID-19 |
Type | Legislations or other statutory regulations |
Category |
Promoting the economic, labour market and social recovery into a green future
– Support for spending, stimulus packages |
Author | Nóra Krokovay (KOPINT-Tárki) and Eurofound |
Measure added | 16 April 2020 (updated 15 June 2022) |
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 government 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 (€1.52 million) 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.
Workers | Businesses | Citizens |
---|---|---|
Does not apply to workers |
Sector specific set of companies
Larger corporations |
Does not apply to citizens |
Actors | Funding |
---|---|
National government
Company / Companies |
Companies
|
Social partners' role in designing the measure and form of involvement:
Trade unions | Employers' organisations | |
---|---|---|
Role | Informed | Consulted |
Form | Not applicable | Unknown |
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.
The relevant sectors accepted the need for the contribution.
This case is sector-specific (only private sector)
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.
Citation
Eurofound (2020), Mandatory contribution to COVID-19 defence fund from banking and retail sectors, measure HU-2020-18/710 (measures in Hungary), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/HU-2020-18_710.html
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