Index – Economy – A very important deadline expires on Monday

The Secretary of State drew attention to the fact that various deductions could be used to reduce the tax. One of the pillars of the government’s tax policy is to further reduce administration and continue tax reduction. Currently, 5.2 million people have electronic storage, which greatly facilitates the tasks of citizens related to tax returns. The Minister of State said:

The draft tax return prepared by the tax office can be revised, supplemented, amended or accepted until Monday. Taxpayers who approve the draft and do nothing — with the exception of VAT-registered individuals, sole proprietors and primary producers — will automatically receive a draft return starting May 22.

He confirmed that taxpayers without electronic storage, who requested a draft tax return be mailed, received it from the National Tax and Customs Office (NAV) by the beginning of May. Those who have refunded tax paid, or who have to pay tax in a draft return and wish to pay in installments, must fill out the Personal Supplementary Return attached to the draft return and return it to the IRS by May 22.

When paying tax, the tax identification number or tax number must always be indicated in the “notice” column of the transfer or check, because without it, the NAV can only relate the amount paid to the payer late. He also noted that several deductions can be applied to reduce personal income tax in relation to self-care savings, and a refund of twenty percent of the amount paid can usually be claimed.

Self-care forms for pension purposes, as well as self-help and health funds, do not reduce the tax of the flat tax base, so the tax must be paid during the year, but part of it can be claimed on the tax return, which is then credited to the savings account – explained András Tállai.

A maximum refund of HUF 280,000 can be claimed

With savings related to self-care, a maximum of HUF 280,000 can be claimed back from the Social Insurance Institution each year, but for this amount several forms of savings must be combined: for example, pension insurance with a voluntary health fund – explained András Tállai , which also mentioned: pension insurance (maximum HUF 130,000 tax refund), tax refund can be used for the amount paid into the Voluntary Pension Fund, Self-Help and Health Fund (total maximum HUF 150,000 tax refund) and pension savings account (maximum tax refund of 100,000 HUF).

The voluntary cooperative insurance fund, the superannuation insurance company, and the financial institution that manages the retirement savings account all provide NAV with data on the certificate issued, so the prepared draft declaration also includes returns based on the data provided. He said the statement regarding 1+1 ratios that can be submitted to civic organizations, religious communities and the National Talent Program can also be submitted on NAV’s eSZJA interface in the easiest way until midnight on Monday.

Among them are 4.5 million individuals, about 480 thousand sole proprietors, almost 17 thousand individuals with value added tax, four thousand basic products – the foreign minister announced, and then emphasized: Hungary is at the forefront of economic whitewashing, many online government actions have become an exemplary all over the world. Thus, the automatic preparation of tax returns not only helps transparency in the operation of the economy, but also makes the lives of countless taxpayers easier.

He explained that Hungary has the third lowest tax rate among the EU member states. The multifaceted family support system includes, for example, a family tax deduction, a deduction for first married people, an SJA deduction for young people under 25, a deduction for women aged 25-30 with children up to 30, a deduction for mothers of four Children or more, personal discount – András Tállai included.

The Minister of Foreign Affairs also reported that thanks to the family and contribution tax benefits, around 320-350 billion HUF remain in the pockets of families each year. Last year, NAV transferred tax refunds of over 611.3 billion HUF to 1.4 million people as an advance. After the tax returns were filed, an additional HUF 64.9 billion was allocated to individuals raising children. “When planning the 2024 budget, we also had a priority goal to protect families and the most important component of family support: the family tax system even in the current wartime,” said the Secretary of State, building on the MTI summary.