Protecting workplaces and businesses is still of foremost importance amidst fighting the second wave of COVID-19. In order to so, Hungary, like most of other developed countries, adopted wage subsidies to encourage employers not to lay off their workers.
In sectors most effected by the second wave of COVID-19 (hospitality, sport, museums and cinemas, etc.) employers have been exempted from payment of social contribution (15.5%), vocational training contribution (1.5%) and rehabilitation contribution for November 2020. Due to the quarantine restrictions being upheld, the tax exemption is prolonged to periods December 2020 and January 2021, for now. Furthermore, the tax exemption is extended to the tourism sector, including hotels, camp sites, travel agencies and passenger transportation.
Companies that have already applied for the exemption previously will be automatically eligible for the extended periods as well, while ‘new joiners’ should request the subsidy via the government office.
By Balint Zsoldos, Head of Tax, KCG Partners Law Firm
