Hungarian economy protection action plan

As part of the set of measures to contain the impact of the COVID-19 pandemic, the Hungarian government introduced the following measures to support businesses: 

• For the duration of the suspension of work, the state agrees to pay 70 percent of wages for a period of 3 months; however, the government would like employees to do useful jobs in the interest of their employers also during this period.
• There is a 40% wage support available for 3 months in relation to persons in research and development jobs.
• Administrative burdens and taxes are being reduced.
• With a view to facilitating communication between economic actors and the government, a business information portal has been set up at the website address vali.ifka.hu.
• From July we are reducing the social contribution tax by 2 percent.
• The deadline for the submission of tax returns has been postponed to 30 September.
• We are accelerating VAT refunds; reducing the time limit in the case of normal taxpayers from 75 days to 30 days, while in the case of reliable taxpayers from 30 days to 20 days.
• Special payment facilities, payment by installments, deferred payment and tax reduction options are being introduced, while forms are being simplified.
• Calls for proposals with an allocation of hundreds of billions of forints will be released for companies retaining their work force for the purposes of technological developments, environmental protection and energy efficiency projects.
• In response to company shutdowns, online training will be organised for workers.
• The state agrees to cover 95 percent of training fees, while job-seekers are entitled to interest-free adult training student loans.
• Sectors most affected by the virus and industries with extensive traditions in Hungary can expect extra funding. Accordingly, the construction industry, transport, logistics, tourism, the creative industry, the health industry and the food industry will have access to development grants and tax cuts, in addition to the availability of preferential loans and capital programmes.
• In order to support tourism, the government is suspending the tourism tax up to the end of the year. The social contribution tax on SZÉP cards (recreational benefits) is being reduced to 4 per cent up to the end of June, and the applicable limit will also increase. Refurbishment and development programmes will likewise be available in this field.
• The health industry will receive more significant support than ever before so that the products of Hungarian pharmaceutical companies and medical supplies manufacturers appear in Hungarian health care in a higher percentage. Both university and corporate research institutes will receive funding; an Agency for Health Industry Innovation is being set up.
• In the interest of protecting employers, credit guarantee and capital programmes have been announced to boost corporate liquidity. These grants could protect Hungarian-owned businesses not only from economic decline, but equally from foreign buy-outs. Corporate credit facilities offered at preferential interest rates amount to almost HUF 2,000 billion in total, with state guarantees to the value of HUF 500 billion.