COVID-19 may also change the VAT returns of many people working abroad
The draft personal income tax returns prepared by the NAV, which are expected to be available on 15 March, will have to be supplemented by some 250,000 individuals with income and payment obligations that are not included in the NAV's records. Due to the coronavirus, many Hungarians working abroad and foreigners working in Hungary may also change their tax residence, which may also significantly change the amounts in the draft tax returns.
Each year you must complete the draft tax return for self-employed persons, private individuals paying VAT and self-employed persons who are not subject to small tax. There is also an increasing number of people who, partly by taking advantage of the technological opportunities of recent years, are dividends and capital gains from abroad will benefit from. They will also have to complete the draft tax return offered.
„Individuals listed above totaling about a quarter of a million, they are the ones who have the deadline available, they must make up for it by 20 May at the latest the necessary data,” said Andrea Kocziha, Director of Moore Hungary tax consultant partners.
COVID-19 may also have changed the tax jurisdiction of many
However, because of the Crown Tax virus, additional individuals now face different tax consequences. Because of the restrictions many Hungarians working abroad and foreign individuals working in Hungary from home, in a country other than the employer's country work done last year following the introduction of quarantine measures. If, however, the work abroad is limited to a period of less than 183 days, the right of taxation may revert to the country of tax residence.
To take an example: if a person working in Austria or Slovakia carried out most of his or her work in a Hungarian home office during the epidemic period, he or she will have to pay income tax in Hungary in 2020.
„A may also occur for posted workers, that the closures meant that they had to work outside their employer's country for a different period than planned. Firms carrying out such activities should in any case it is proposed to review the Hungarian tax liability of the workers concerned last year” - added Andrea Kocziha.
Moore Hungary
Moore Global, which started in a London office more than 110 years ago, is now one of the world's leading consulting and audit networks. Present in over 100 countries worldwide, the network has more than 600 independent offices and over 30,000 employees. The group's turnover for the last financial year exceeded $3 billion.
Moore Global's services will be directly available in the domestic market from March 2021. Moore Hungary has been offering a full range of consulting services in the fields of business, financial, tax, accounting and auditing with a team of almost 100 experts since its inception.
In our fast-changing world, Moore provides strategic guidance and practical advice to help clients navigate and understand the complex regulatory and changing market environment and industry conditions, and thereby find the best solutions.
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