In line with a recent modification approved by the Hungarian Parliament as of 1 January 2018, employers are no longer able to prepare tax assessments for their employees. The aim of the modification was to ease the administrative burden on entrepreneurs. According to the records of the Hungarian Ministry of National Development, entrepreneurs spent an average of 34 working days per year with administrative duties, which was over the average in EU.
From now on, the national tax authority will prepare the personal income tax declaration. Upon request of the employer having large number of employees, the authority is able to visit and temporary settle at such employer for completing the preparatory works. All taxpayers must have an e-portal, where the authority will publish the draft of the declarations as of 15 March 2018. Taxpayers have the chance to approve, adjust, correct the draft or to prepare their own declaration by 22 March. Failing to do so, the draft will automatically be the approved personal income tax declaration of the taxpayer.
By Gabriella Galik, Partner, KCG Partners Law Firm