3.1 Employment Contracts
- During the state of danger, the application of articles of the labour safety act connected with remote working are suspended. In case of remote working, the employer shall inform the employee the required health and safety conditions.
- During the state of danger, the employer and the employee can deviate with mutual consent from the regulations of the Hungarian Labour Code about remote working.
- During the state of danger, the amount corresponding to 10 % of the minimum wage (16.100 HUF) can be accounted for as an expense without any proof. The amount shall be proportionate to the number of days involved in remote working. The conditions to pay out this amount are: (i) remote working stipulated in an employment contract and (ii) the employer shall not account for other costs (e.g. use of internet, costs of utility bills, etc.).
- In general, the employment of an employee hired in the framework of temporary agency work in connection with the health care system is not possible. If the performance of the activity of the health care provider cannot be ensured in any other way, an employee may be employed in the framework of temporary agency work with the prior written approval of the director general of the national hospital.
- Resident doctors may be involved in the defence activity against the coronavirus epidemic for a maximum of 44 working days or 352 hours per year.
- Tax advantage is granted for employers operates in the field of catering industry, entertainment industry (filmography, performing art, museum, amusement park, zoo etc), sports industry (operating sports facilities) and retail trade (e.g. non-specialized stores, retail sale of audio and video equipment, textiles, electrical appliances, furniture, lighting equipment, book retail, office supply, music and video recording, sports equipment, retail trade of toys, clothes shops, watches and jewellery, renting activities (video cassette, discs, household appliances), gambling and betting activity (except lottery and toto), retail sale of flowers, wreaths and ornamental plans, hairdressing and beauty activity, repairing activity (consumer electronics, footwear, furniture, watch and jewellery), driving education with the condition that the employer fulfil its obligation to pay wages and does not terminate employment contracts by mutual consent, termination notice or termination without notice.
- The Hungarian state provides a reimbursement 80 % of net revenue calculated on bookings registered up to 8th November 2020 for accommodation providers registrated in National Tourist Information Centre. The conditions of reimbursement are that the employer maintains the employment relationship of employees employed on 8th November 2020 and pay wages for the employees.
The employer may take the necessary and reasonable measures for the purpose of the employee's health surveillance
4 Real Estate & Construction
- Termination moratorium revoked as of 30/06, moratorium on increasing rents was revoked as of the end of the state of emergency
- Landlords, who are the state, state-owned company, municipality or municipality-owned company, cannot terminate leases concerning touristic, catering, leisure, gamble, film industry, performing artist, event planning and sport services until 30/06/2021 (inclusive), which deadline may be extended
- Rents cannot be increased during the state of emergency regardless landlords’ such rights
- In case of leases of real properties (flat or other properties) owned by municipalities or the Hungarian state, the lessee will have the right to unilaterally extend the lease term until the end of state of emergency by an unilateral declaration if the lease term expires during the state of emergency. The parties may deviate from the special rules applicable to such leases during the state of emergency.
4.2 Enforcement procedure
- Until 05/04/2021 on-site enforcement procedure may not be carried out
- Documents are served by post or electronic means
- A person who was unable to fulfill his / her obligation during the enhanced protection may not get a fine for this
- The court may, at the request of the debtor, suspend the enforcement if the debtor is in a life situation tied to pandemic measures
- Hungary adopted some voluntary relief for the operation of the condominiums:
- Condominiums are not required to hold general assemblies. However, general assembly must be conveyed if at least 1/10 of the owners propose that indicating the respective agenda, reason and proposal for the decision of the owners. In such case, the decision must be made solely by a written procedure. Otherwise, the general assembly must decide on the annual budget, accounting or other cases, which deadline expires during the state of emergency, within 90 days after the end of the state of emergency.
- In case of the operation of the condominiums, a declaration, which was sent by electronic means (e.g. email, or other electronic form of communication) by an owner or a body of the condominium, shall be deemed written if the followings can be identified: the (i) declarant; (ii) content; (iii) date; and (iv) addressee.
- A procedural act, which can be performed only in person, must not be taken. The deadlines for such procedures are suspended until the next day following the end of the state of emergency. Such deadlines will renew after this date.
- The general assembly cannot release or withdraw the mandate of the common representative (or management committee) during the state of emergency. If the mandate of the common representative (or management committee) ends during the state of emergency, he must perform all of his activity with an unchanged remuneration until the appointment of a new representative but not later than 90 days after the end of the state of emergency. If the mandate of the common representative (or management committee) ends for other reasons, his activities must be performed by the accounting committee. A new common representative (or management committee) must be appointed in the above cases within 90 days after the end of the state of emergency.
4.4 Agricultural lands
- Any agreement subject to the act on forests, use of forests must be extended until the end of the state of emergency.
- Agricultural lands cannot be subject to any auction during the state of emergency. The applicable deadlines will restart after the end of the state of emergency.
4.5 Important economic areas
- The government introduced the "important economic areas" as a new instrument for reasons of national economy. If the government indicates real properties as an important economic area by a governmental decree such area, inter alia, can be subject to planning / building / landscaping provisions adapted by the Government. Moreover, a taxpayer, who pursues its economic activity in such area, will have to pay the local taxes to the relevant municipality of the country and not to the local municipality after the relevant municipality of the country adapted a decree in this respect. The local tax levied by the municipality of the country cannot be increased and the tax advantages applied cannot be revoked during the state of emergency. Such important economic area is some real properties located at the industrial park of Göd.
4.6 Extension of the validity of permits; landscaping procedure
- The validity of the permits, which are issued by a building authority with the exception of the occupancy permit, is extended with one year without any application form the client if the permit expires between 23 April 2020 and 30 days after the end of state of emergency. The same applies to any permits issued by the monumental protection authority.
- Landscaping procedure may only be conducted electronically (application; submission; decision rendering).
4.7 Extension of the deadline to comply with the requirement of nearly zero energy performance
The requirement of nearly zero energy performance is delayed in case of new residential buildings receiving a use permit until 30/06/2022
The developers are nevertheless free to choose the stricter rules regarding zero energy performance
4.8 Possibility to choose the non-effective regulation
The developers may decide freely that they comply with the current or the to-be-effective content of certain construction related legislation (e.g. act on construction, fire safety, and disaster management and any related decree) – applicable till 23/052021
4.9 Simplification of the construction permit
5 Tax & Duties
5.1 Extraordinary tax
- Extraordinary tax imposed on financial institutions for the tax year of 2020
- Extraordinary tax imposed on participants of retail sector (online retailers, too) whose tax base exceeds HUF 500 mio (approx. EUR 1,5 mio)
5.2 Tax issues related to companies
- The annual (or extraordinary) corporate income tax declaration due to be submitted, and the annual (or extraordinary) corporate income tax to be paid, between 22/04 and 30/09 may be submitted and paid on 30/09 at the latest.
- If (as per the above) the annual corporate income tax declaration is not completed before 30/09, the corporate income tax advance payments to be assessed and declared between 22/04 and 30/09 may be assessed and declared on the last available final data of the corporate income tax.
- The above or similar time extension is available also with respect to local business tax, small corporate tax, income tax for energy providers.
- No tourism tax is payable until 31/12.
5.3 Exemption from paying public charges and public health contribution
- Flight companies whose main business activity pursuant to TEÁOR’08 fall under 30.30, 33.16 or 51.10 could be exempted from paying certain contributions from 05/2020 till the end of the month when the state of emergency is revoked or till the end of the year at the latest.
- The scope of the Beneficiaries has been widened to entities whose main business activity pursuant to TEÁOR’08 fall under the following categories: plant propagation (01.30), growing of other non-perennial crops (01.19), growing of other perennial crops (01.29), wholesale of flowers and plants (46.22), retail sale of flowers, plants, seeds, fertilizers, pet animals and pet food in specialized stores (47.76), hunting, trapping and related service activities, distilling, rectifying and blending of spirits (11.01), manufacture of wine from grape (11.02), manufacture of beer (11.05), growing of grapes (01.21).
- The scope of the Beneficiaries has been widened to entities whose main business activity pursuant to the Hungarian activity classification (TEÁOR’08) falling under the following categories receive tax benefits: travel agency, tour operator reservation service and related activities (79); physical well-being activities (96.04); inland passenger water transport (50.30)
- Additional group of small businesses are exempted from paying social contributions under the fixed-rate tax of low tax-bracket. Business activities under the scope included such as beauty care services, glazing, gas, plumbing and heating services, outpatient curative- and elderly care, flooring services, exercise and other sporting activities, art performances, hotel services, gambling and betting activities
- The debts under fixed-rate tax of low tax-bracket ("KATA") incurred before 1/03 will be exempted for the duration of the state of emergency. Thereafter, the businesses may pay their tax debts in equal monthly instalments from the month following the end of the quarter in which the state of emergency announced
- Childbirth allowance entitlements expiring during the state of emergency are sustained
- The following entities shall not pay the social security contribution until 30/06: (i) payment agencies after their employees employed in employment relationship; (ii) self-employed persons; (iii) business partners
- Between 1/03 and 30/06, the paying entity whose main business activity pursuant to the Hungarian activity classification (TEÁOR’08) falling under the following categories receive tax benefits: taxi operation (49.32); hotel and similar accommodations (55); catering service (56); performing arts (90); Sports activities and amusement and recreation activities (93); Gambling and betting activities (92); video and television program production services, sound recording and music publishing (59); Organisation of conventions and trade shows (82.30); Publishing of newspapers (58.13); Publishing of journals and periodicals (58.14 Radio broadcasting (60) ("Beneficiary")
- Between 1/03 and 30/06, Beneficiary is exempted from paying the social security contribution after employees, self-employed persons and business partners
- Out of the compulsory contribution between 1/03 and 30/06, Beneficiary must only pay after the income comprising part of the contribution base of the employees, self-employed persons and business partners the health insurance contributions in kind, which is 4% of the compulsory contribution and which may not exceed HUF 7,710. Accordingly, Beneficiary is exempt from other components of the compulsory contribution (i.e. health insurance and labour market contributions, pension contributions, sick-pay contributions, health services contributions)
- Between 1/03 and 30/06, Beneficiary is exempt from the vocational training levy, the advance of the rehabilitation allowance and small business tax
- The contribution to tourism development shall not be established and declared neither in the quarterly nor in the yearly tax return in respect of the period from 0/01 and 29/02
- Such benefit for those working in sectors of tourism, restaurant and catering, amusement, gambling, film industry, artistic performances, events, and sport until 30/06
6 Corporate, M&A
6.1 Meetings / Decision making (11/04):
- Meeting of the corporate bodies may be held in person or with the participation of the members by electronic means of communication. Decisions can be made without a meeting at the initiative of the management, if the legal provisions applicable to the company do not prohibit a decision being made without a meeting, and if the law does not require publicity of the meetings of the decision-making body, even if the deed of foundation of the company does not provide for these possibilities and the conditions thereof.
- If the deed of foundation of the company does not state the rules of meetings held by electronic means of communication, the management of the company has the right to set up such rules, which must be in compliance with the following: i) members must be informed about the agenda and the draft of the decision, ii) the electronic means of communication, which allows for the identification of members and the mutual and unrestricted communication, must be determined.
- in case of vote by electronic device: (i) the available electronic means of communication and IT applications have to be specified and (ii) the identity of the members or their representatives (if not known) must be verified, iii) at least 8 days must be provided for voting, iv) the vote can be sent in an e-mail as well
6.2 Company name (11/04):
- the term "state" or "national" shall appear in the company name if in the view of the performance of a particularly important public task performed by the company, the government grants permission to do so in a public decision.
6.3 Public limited liability companies 11/04
6.4 Declaration of the members of the company 11/04
- Declarations may be sent via e-mail if signed with an electronic signature or used a document authentication service traced back to identification, natural persons may also send documentations via e-mail if personal identification is provided.
6.5 Emergency assistance on the operation of companies essential to the public supply (18/03):
- The most essential state-owned and non-state owned companies, mostly in the energy, telecommunications, transport and health sectors will be monitored and coordinated through the Defense Administration Staff to promote the smooth and safe operation of the supply.
6.6 Procedures of court registry (31/03)
- the company information service may only provide information and other services electronically, all communication to avoid personal appearance
Step-by-step easements on restrictions proportionately to the number of vaccinated people
23/05/2021 – 5th step reached having 5 million people vaccinated
01/03/21: COVID-19 Immunity Certificates
the certificate indicates if the person has:
(i) recovered from the COVID-19 or
(ii) received the vaccine.
9.2 Entertainment / catering / shopping regulations
Restaurants and bars
- compulsory opening hours abolished
- people having COVID-19 Immunity Certificates may stay inside and outside
- people not having COVID-19 Immunity Certificates may stay outside (terraces) only
Cinemas, theaters and music venues
- reopened for people having COVID-19 Immunity Certificates
Private / family events
- may be held without restrictions up to 50 people
- may be held without restrictions up to 200 people
Other open air events
- may be held without restrictions up to 500 people
- event having more that 500 attendants may only be visited by those having COVID-19 Immunity Certificates
12 Intellectual Property
12.1 procedural law / deadlines
- Deadlines are not affected by the measures.
12.2 Hearings, meetings
- In-person consultations with case handlers are possible only in exceptional cases upon previously set appointments.
- The access to case files in person is still suspended until further notice, electronic access is possible upon special request.
- Submission of documents in person is possible in a limited timeframe between 10 and 12 a.m. on working days.
- The customer service centre is closed. Hence, e.g. voluntary registration of copyright is possible only by electronic means.
Travel restrictions are not applicable to those having a certificate of vaccination and
(i) the country from which the person is coming from has a bilateral agreement with Hungary on mutual acceptance of vaccination certificate or
(ii) the country from which the person is coming from issued a vaccination certificate which is unilaterally recognized by Hungary (currently: Romania).
Hungarian citizen (and citizens having permanent residence in Hungary) when coming back to Hungary might be subject to Covid testing
- if positive – official quarantine;
- if negative – home quarantine of 10 days
Non-Hungarian citizens may not enter Hungary unless the traveller:
- verifies a reasonable cause for coming to Hungary (e.g. compulsory court procedure, funeral / wedding, student, etc.);
- comes for a business cause among joint ventures;
- commuter in a neighbouring country;
Transit is also possible given that the traveller leaves the country within 24h and was tested negative;
Additional exceptions apply to sportsmen and others sports professionals as well as to those attending sport events.
Travel restrictions from South-Africa (03/12/2021)
Non-Hungarian nationals coming from the Republic of Botswana; (ii) South Africa; (iii) Kingdom of Eswatini; (iv) Kingdom of Lesotho; (v) the Republic of Mozambique; (vi) the Republic of Namibia; (vii) the Republic of Zimbabwe ("Restricted countries") or coming from other countries but before that, stayed in the Restricted countries may enter Hungary only in exceptional cases.
The police agency may authorize the entry of a non-Hungarian national if:
- verifies a reasonable cause for coming to Hungary (e.g. compulsory court procedure, funeral / wedding, student, etc.);
- receive healthcare service in Hungary;
- comes for a business cause among joint ventures;
- other equitable grounds.
In that case, non-Hungarian nationals must stay in quarantine for 14 days.
Hungarian nationals (and their non-Hungarian family members) coming from the Restricted countries or from other countries before which they stayed in the Restricted countries may enter Hungary but must stay in quarantine for 14 days.
- violation of quarantine rules (e.g. leaving the flat without permission, obstructing the police's procedure, not using the quarantine app, etc) entails a fine from HUF 5,000 up to HUF 150,000
- also possible to impose fine several times a day but a daily fine maximum is HUF 600,000
- in case of compulsory home quarantine (e.g. when coming to Hungary from abroad), a separate administrative decision ordering compulsory home quarantine is no longer needed (i.e. compulsory home quarantine ordered 'automatically')
- in cases where a decision is a result of an assessment (e.g. risk of infection) administrative decision is still a must
- those under quarantine must install and use the official quarantine mobile app (unless the technical requirements are not met, i.e. no compatible mobile for this)
Kindly note that the summaries on this page are for information purposes only and do not take into account the specifics of a certain situation. The information is not designed to substitute and cannot substitute legal advice tailored to your needs. It is made available strictly on a non-reliance basis. Also, some of the addressed topics might be subject to short-term changes.