The Hungarian government published a release on 19 December 2020 announcing that municipal business tax will be cut in half with effect from 1 January 2021. The lost revenue for smaller municipalities with up to 25,000 inhabitants will be offset with federal government support, while the financial situation of larger municipalities will be reviewed on a case-by-case basis.
The release also includes that, in addition to businesses in the restaurant, hotel, and tourism sectors, an exemption from social contributions and wage subsidies (two-thirds coverage) is extended to all businesses that have been forced to close due to COVID-19 in December 2020 and January 2021. Further, the moratorium on loan repayments for businesses and households is extended to 1 July 2021 and home renovation support is being granted for families with children.
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