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Tax Exempt COVID Tests for Employees

Tax Exempt COVID Tests for Employees

Hungary
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Employees who have coronavirus tests paid for by their employer will not have to pay tax on them. The Hungarian tax authority published its official guidelines with regards the tax treatment of COVID tests.

The tax authority clarifies that tests provided by the employers to the employees free of charge are tax exempt both in the emergency period (11 March 2020 – 17 June 2020) and subsequently.

Special rules and notification obligation (within 60 days) applied to tests provided during the emergency period, however the tax authority confirmed that as a general rule COVID tests should not be considered as taxable income, if the employer provides those to the employees to ensure safe and healthy work environment (in accordance with the Hungarian act on occupational safety and health).

By Balint Zsoldos, Head of Tax, KCG Partners Law Firm

KCG Partners at a Glance

KCG Partners is a Hungarian business law firm providing a comprehensive range of legal services to international and local clients seeking local knowledge and global perspective. The firm comprises business-minded lawyers with sector-specific expertise, creating value for clients by applying a problem-solving approach and delivering innovative solutions.

The firm has a wealth of knowledge in corporate law, M&A, projects and construction, energy, real estate, tax, employment, litigation, privacy and forensics, securitization, estate planning and capital markets.

To address clients’ regional and international concerns, the firm maintains active working relationships with other outstanding independent law firms in Central and Eastern Europe, whilst senior counsel Mr. Blaise Pásztory brings over 40 years’ of US capital market and fund management experience.

KCG Partners Law Firm is the result of the teamwork of passionate and talented lawyers guided by the same principles and sharing the same values: 

  • Our most valuable asset is our people. They are the engine of our business and the key to our success.
  • We push boundaries by looking for innovative solutions that can empower our clients to achieve greater results.
  • We place our experience, commitment and professionalism to your service.
  • We are driven by our vision to shape and lead the Hungarian legal market and become a first choice law firm in our practice areas.

Firm's website: http://www.kcgpartners.com