The Hungarian government decided on the immediate actions to moderate the impact of the CoVid-19 pandemic on the national economy. This includes the following measures:
1. Deferral of payment regarding principal debt, interest and fees
- Unless otherwise agreed by the parties, during the emergency period, because of the CoVid-19 pandemic, the principal debt, interest or fee payable by the debtor under a loan or financial leasing contract (hereinafter referred to as “the contract”) shall be modified so that the debtor shall be granted a deferral of payment (hereinafter referred to as “payment moratorium”) in respect of its obligations to pay its principal debt, interest and fees.
- The payment moratorium does not affect the debtor’s right to fulfil its obligations under the original terms of the contract. The payment moratorium will last until 31 December 2020, which period may be extended by a government decree. The deadline for fulfilling the contractual obligations and the duration of the commitment shall be extended with the time length of the payment moratorium. The contract which expires during the emergency period shall be extended until 31 December 2020.
- These provisions shall apply to loans already granted on 24 March 2020 at 24:00 pm.
- In the case of unsecured loan agreements concluded with a consumer after 18 March 2020 the total APR shall not exceed the central bank base rate plus five percentage points.
2. Lease agreements regarding non-residential premises may not be terminated
For the following sectors, lease agreements concluded in respect of non-residential premises
may not be terminated until 30 June 2020:
- Catering industry
- Entertainment industry
- Gambling, film and performance industry
- Event organization
- Sports services
The period of the prohibition on the termination may be extended by a Government decree until the end of the emergency period. The rent may not be increased during the emergency period, not even if otherwise allowed by the contract.
3. Mitigation of public duty, contribution payment liabilities
For March, April, May and June 2020 in the business entities operating in the above listed sectors
- employers are exempted of the payments which are due after the employees’ wages,
- by employees only the in-kind health insurance contribution is payable, the monthly amount of which is up to HUF 7,710.
Tax payers who are obliged to pay the tourism development contribution shall be exempted of the liability for the period from 1 March 2020 to 30 June 2020. Tax payers shall not determine the liability and shall not file tax returns in this regard.
Tax payers who are subject to the Fixed-Rate Tax of Low Tax-Bracket Enterprises and providing passenger transport services are exempt from their tax liability for March, April, May and June 2020. An official government decree to enact the proposed measures is expected.
|Overview of COVID-19 virus relief measures in other CEE/SEE countries
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