Coronavirus: the government’s emergency package

  • March 24, 2020
Summary of the government’s Coronavirus emergency package from OrienTax.

On March 18, 2020, the government announced an emergency package to mitigate the impact of the coronavirus pandemic on the national economy. The government decree on the measures was published on the same day and entered into force on March 19, 2020.

The regulation provides – inter alia -, for reductions in taxes, and contributions in respect of certain sectors and for loans.

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Support for the most affected sectors

The government decree sets out specific measures for industries most affected by the current crisis, including film and performing art industries:

  • For these sectors, leases for non-residential premises may not be terminated until 30 June 2020. The ban on notice may be extended by a Government decree until the occurrence of the emergency period.
  • The rent may not be increased during the emergency period, even if it is permitted by the contract.
  • In respect of individuals employed by enterprises in these sectors
    • the employer is exempt from paying public dues on wages for the months of March, April, May and June 2020
    • only the in-kind health insurance contribution is payable by the employees, and the payable monthly amount may not exceed the monthly health care contribution of HUF 7,710

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Moratorium on loan repayment

The capital and interest payment obligations of businesses (and individuals) will be suspended until the end of the year. The payment moratorium applies to all credit and loan agreements and financial leasing agreements concluded until 18 March 2020. The payment moratorium expires on 31 December 2020, but does not affect the debtor’s right to perform under the original terms of the contract

Source: OrienTax