Autumn Tax Package 2019 –

VAT changes

50 percent of the VAT on car leasing is not deductible if business use is not clarified

It is needed to examine relation to the business activity. If the taxable person eligible for a tax deduction it can apply the 50 percent VAT deduction regardless the actual level of business and private use.

Tax-exempt status up to 12 million forints

According to the proposal, the value limit of opting for tax-exempt status is increased from 8 to 12 million forints.

Interim regulations relating to 5 % VAT on building flats

According to the proposal, the preferential, 5 % VAT rate will apply to the sale of residential properties that satisfy all of the following conditions on 31 December 2019:

  • documents were filed to local government,
  • the condition of building is at least structurally completed

Changes in the rules of personal income tax, social security, and social contribution

The autumn tax package includes a number of changes concerning personal income tax, social security regulations and small taxpayers' itemized lump sum tax ("KATA").

Possibilities for dividing family tax base allowance extended

In relation to the incomes included in the consolidated tax base, we have to point out the extension of the possibilities for the division of family tax base allowance. In cases when the individual receives increased amount family allowance but has practically no other income (e.g. in the case of first-degree students of higher education institutions, persons with altered working capacity, persons who have reached the old-age pension age limit etc.) the division will be applicable from 1 January 2019.

Social contribution tax

From 1 January 2019, the tax rate will be 19.5 percent.