Cafeteria changes - 2017

Fringe benefits

In accordance with the changes of Act CXVII on Personal Income Tax (hereinafter: PIT) which comes into effect from 1 January 2017 will only be possible to grant fringe benefits to employees on the basis of two legal categories as follows:

• SZÉP Card’s annual frame amount is not changing, payments can be transferred to the existing sub-accounts, not more than 450,000 HUF per year.
• The other item with preferential taxation will be the cash benefit up to HUF 100,000 per year.

The tax base multiplier rete to the fringe benefits will be reduced from 1.19 to 1.18. The employer will pay the 15% PIT and the 14% health care charge on this amount.

Certain specific benefits

Most of the popular and well-known benefits are removed from the scope of preferential tax rated circle, involving the Erzsébet voucher, the school support benefit, the local travel pass, the coverage of school system based educational costs, and the employer contribution paid to voluntary mutual pension, health or assistance fund, or employer pension service institution. Effective from 1 January 2017, these benefits will have a burden of 43.66% instead of the burden of 34.51% paid until 31 December 2016, but will have no upper amount limits.