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SZÉP Card Rules Changed from the 1st of January

As of the 1st of January 2022, the maximum amount of the support that can be granted as fringe benefits for certain sub-accounts of the SZÉP card is HUF 450,000 per person per year and the maximum amounts that can be granted per sub-account are as follows:

As of the 1st of January 2022, the maximum amount of the support that can be granted as fringe benefits for certain sub-accounts of the SZÉP card is HUF 450,000 per person per year and the maximum amounts that can be granted per sub-account are as follows:

  • for the accommodation sub-account, the maximum amount that can be used for accommodation services according to the respective government decree is HUF 225,000 per year,
  • for the catering sub-account, up to HUF 150,000 per year for catering services in hot food catering establishments (including workplace catering) according to the respective government decree,
  • the leisure sub-account may be used for leisure, recreation and health care as defined by the relevant government decree, up to HUF 75,000 per year.

The interchange between the different sub-accounts of the SZÉP card has been extended until the 31st of December 2022, so that services can be paid for from any sub-accounts.

The amounts available on the sub-accounts can also be used for food purchases (except alcohol and tobacco products) between 1st of February 2022 and 31st of May 2022.

That part of the total amount transferred to the sub-accounts that does not exceed the annual recreational allowance is considered as a fringe benefit, which is HUF 450,000 for all employers (the maximum was temporarily HUF 800,000 per person in the second half of 2021, which was reduced to HUF 450,000 as of 1 January 2022). The excess benefit over this amount is taxable as a specific benefit not considered as a fringe benefit.
The employer must pay 15 % personal income tax and 13 % social contribution tax on the amount of the fringe benefit (the social contribution tax reduction applies from 1 January 2022). (In the second half of 2021 there was a temporary social contribution tax exemption for SZÉP cards. This social contribution tax exemption ceased as of 1 January 2022.)

In summary, the tax base for the payer of the SZÉP-card benefits is the following:

  • the total amount of the income in the case of fringe benefits,
  • In the case of certain defined benefits other than fringe benefits, 1.18 times the income as defined above (excess part).
  • Thus, up to HUF 450,000, the total tax burden on the payer/disburser entity is 28% of the benefit.
  • For SZÉP card benefits above HUF 450,000, the tax burden on the payer/disburser entity is 33.04% falling on the amount exceeding HUF 450,000.

Should you have any questions regarding the above, feel free to contact us.

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