CLV Partners

CLV-02

Amendment of the Personal income tax act

As of 2017 the “cafeteria system” will be transformed, according to which the scope of the categories of cafeteria benefits (“cafeteria”) and certain benefits which are not considered as cafeteria (“certain benefits”), will change. In addition to this from 2017 the employer may also grant a maximum amount of net HUF 100.000,- in cash to the employee per year as part of the cafeteria with the reduced tax rate.

The amount of the reimbursement of the costs of travelling to work is partly tax-free. Currently the tax-free amount is HUF 9/km. In the future an amount of HUF 15/km will be tax-free.

The definition of “posting” has also been clarified. From August of 2016, posting shall mean any official or business travel ordered by the employer, not including the travel to work and the travel between the residence or place of stay of the employee and the seat or establishment of the employer.