Hungary - Udpated COVID19 measures (LIGA)

State of emergency due to COVID 19 came in force in Hungary on 11 March 2020.

Measures taken by the Hungarian government on 18 March 2020:

  • Suspending, until the end of the year, obligations for payment of the principal and interest on loans taken out to date by private individuals and businesses – by every private individual and every business.
  • Short-term business loans will be extended until 30 June. A new upper limit on the annual percentage rate was set, the APR, on all new consumer loans taken out from tomorrow onwards: the maximum rate will be 5 per cent above the Central Bank’s base rate.
  • Some sectors of our economy are already experiencing major difficulties. Sectors struggling with such serious difficulties include tourism, catering, the entertainment industry, sport, cultural services and passenger transport, or the work of taxi drivers. In these sectors employers’ contributions will be reduced to zero, and employees’ contributions will also be significantly reduced: they will not be required to pay pension contributions, and their health insurance contributions will be reduced to the statutory minimum. At present these measures are planned to remain in place until 30 June.
  • Suspending the flat-rate Small Businesses Tax [KATA] obligations of taxi drivers until 30 June. In these sectors the termination of rental agreements and rent increases will not be allowed. Government also suspended payment requirements for the Tourism Development Contribution until 30 June.
  • Adopted decisions in order to make employment rules more flexible; unilaterally (without consulting the social partners) changed the Labour Code "to make it easier for employers and employees to finalise agreements" with the aim is to keep as much jobs as possible, but making employees very voulnerably by raising the danger to eliminate the Labour Code and collective agreements in such time of crises.

Measures taken by the Hungarian government on 23 March 2020:

  • On top of taxi drivers, 81 thousand more private entrepreneurs and small businesses will be exempted from paying the "KATA" flat tax and social security contributions after their employees. The measure will affect performing arts, beauty services, repair services (gas, water, glass, etc), sporting services, and other sectors, but the exact list will be released later in the government decree.
  • The government also grants exemptions for all "KATA" flat tax debts occurring after 20 March.
  • Hungarian media providers will get tax reliefs to balance missing ad revenues.
  • All evictions and foreclosures will be suspended until the end of the state of emergency, just like the enforcement of tax debts.
  • Child care allowances and child care benefits expiring during the state of emergency will be prolonged until the special legal order terminates.