Act CXVII of 1995

7. Tax free due to other reasons:
7.11. the free or discounted use of computer and Internet, provided by the employer (including especially the takeover of the fees of the one-time, the monthly and the turnover fee, and the providing of the modem), furthermore, the free or discounted acquisition of a personal computer used for at least two years after the first put in operation;

Legislation

Of the Personal Income Tax Act No.I. new Annex to Item 8.28. meaning
8. In-kind benefits are exempt:
Item 8.28. free or at a discount
b) the payment that granted to the same individual for the tax year allocated by the payer more than HUF 50 thousand, of sporting event tickets, rent 0%

Act CXVII of 1995

70. § (1) Taxes for income resulting from certain benefits in kind are to be paid according to the regulations listed in Paragraph 71.
(2) The following, listed in a)-e) are considered income as mentioned Article 1, if the employer, corporation (hereinafter, for the purposes of applying this regulation, referred to as employer) is the provider and the employee (including the employee assigned to the employer according to the regulations of the Labour Code), or the personally contributing member of a corporation (hereinafter, for the purposes of applying this regulation, the private individual receiving the benefit is referred to as employee) is the receiver;
b) a monthly maximum of 18,000 HUF of the income received in the form of hot meal for each month of the legal relationship which forms the basis of the benefit provided;

(4) d) the following are considered to be income received in the form of hot meal: dining at a place designated for it, catering at the workplace or income received by public catering (including vouchers used exclusively for taking these services);

71. § (1) The provider of the income has to pay 25% tax of the income of the private individual, resulting from the benefits defined by the conditions listed in the regulation of Paragraph 70 and within the limits set there.

Act CXVII of 1995

70. § (1) Taxes for income resulting from certain benefits in kind are to be paid according to the regulations listed in Paragraph 71.
(2) The following, listed in a)-e) are considered income as mentioned Article 1, if the employer, corporation (hereinafter, for the purposes of applying this regulation, referred to as employer) is the provider and the employee (including the employee assigned to the employer according to the regulations of the Labour Code), or the personally contributing member of a corporation (hereinafter, for the purposes of applying this regulation, the private individual receiving the benefit is referred to as employee) is the receiver;
d) a monthly part (in a maximum not exceeding 30% of the minimum wage) of the income received in the form of schooling contribution for each month of the legal relationship which forms the basis of the benefit provided;

(4) f) The following are considered to be schooling contribution that is provided by the employee, referred to in article (2), for a pupil or child taking part in the public schooling (or in any kind of education corresponding to this, in any state of the European Economic Area), before the first day of the school year and within 60 days after this day, for the purchase of course books, schooling aids, clothing (including the refund of the invoice on purchasing the above mentioned items during the above mentioned period; that has been issued for the name of the employer, respectively the entity paying the wage), or is provided exclusively in the form of a voucher providing a right to purchase the above mentioned goods; in case the beneficiary private person is an employee of the contributor, who is a parent of the child, or is a spouse of this parent entitled to receive this family contribution or a similar contribution, based on the relevant law on supporting the families or any similar law of any EEA states.

71. § (1) The provider of the income has to pay 25% tax of the income of the private individual, resulting from the benefits defined by the conditions listed in the regulation of Paragraph 70 and within the limits set there.

Act CXVII of 1995

70. § (1) Taxes for income resulting from certain benefits in kind are to be paid according to the regulations listed in Paragraph 71.
(5) The following are considered income as mentioned Article 1
a) from the monthly contribution transferred by the employer for the private individual
ab) for the voluntary mutual health fund(s)/self-supporting fund(s) that together equal to 30 percent of the minimum wage,
in the case according to point a) if the private individual makes a statement that on the given title
in the business year he did not have other income as described in point a) from other contributor, furthermore, if the contributor transfers the contribution monthly or indicating the sums relevant to each month several months ahead or posterior for maximum three months in full with the following being valid:
1. the contribution in case of a private individual is the income received based on the month(s) relevant to the reported sums;
2. the contributor makes statement on and pays the tax (calculated by taking into consideration point 1.) in accordance with the regulations relevant to the months corresponding to the stated amounts and in the volume set in these regulations; in case of transferring them ahead he shall pay the tax as an obligation relevant to the official month of the transfer; in case of a posterior transfer the contributor shall pay the tax relevant to the month during which the transfer has been made.

71. § (1) The provider of the income has to pay 25% tax of the income of the private individual, resulting from the benefits defined by the conditions listed in the regulation of Paragraph 70 and within the limits set there.

Provision on the tax

44/A. § (1) The private individual, being a member of the voluntary mutual insurance fund can dispose with transferring the amounts set below, which are relevant to the amount that remains from the tax of his contracted rateable value after the deduction of tax benefits, based on his tax statement; in case his tax statement is prepared by his employer based on the statement received by the employee from the employer (voluntary mutual fund statement):
a) the sum paid by him during the business year for the voluntary mutual pension fund(s) under the title of his legal relationship being a fund member, furthermore, 30% percent of the joint value of the sum that counts as his extra income received by him during the business year in accordance with this regulation, credited on his individual account, but a maximum of HUF 100 000 in the business year (by the private individual who reaches the retiring are that is authoritative to him based on the valid regulation, before 1st of January, 2020 this limit is set at HUF 130 000),
b) the sum paid by him during the business year for the voluntary mutual healthcare fund(s) and self-supporting fund(s) under the title of his legal relationship being a fund member, furthermore, 30% percent of the joint value of the sum that counts as his extra income received by him during the business year in accordance with this regulation, credited on his individual account, but in a maximum of HUF 100 000 in the business year (by the private individual who reaches the retiring are that is authoritative to him based on the valid regulation, before 1st of January, 2020 this limit is set at HUF 130 000), but these can reach together during the business year a maximum of HUF 120 000 (by the private individual who reaches the retiring are that is authoritative to him based on the valid regulation, before 1st of January, 2020 this limit is set at HUF 150 000),
c) as a member of a voluntary mutual health fund independently from provisions of points a)-b) -
ca) 10% of the sum separated based on his command from his bank deposit on his individual account and deposited in the business year for at least 24 months from the day of making the deposit reported as a bank deposit on the last day of the business year in the business year of making the deposit,
cb) from his bank deposit on his individual account 10% of the sum paid by the voluntary mutual insurance fund during the business year as the offset of the prevention service determined in a separate edict based on his commission,
taking into consideration that based on the points ca)-cb) and point b) the amount of the transfer cannot exceed HUF 100 000 during the business year (by the private individual who reaches the retiring are that is authoritative to him based on the valid regulation, before 1st of January, 2020 this limit is set at HUF 130 000), and taking into consideration also the transferring authority in accordance with point a) the total transfers during the business year cannot exceed HUF 120 000 (by the private individual who reaches the retiring are that is authoritative to him based on the valid regulation, before 1st of January, 2020 this limit is set at HUF 150 000).

Annex nr. 1. of the Act CXVII of 1995.

On the tax-free incomes
6.4. the sum which
a) is credited by the voluntary mutual insurance fund for the individual account of his member on the title of a yield of the investments made by using the cover base, including also the sum credited based on taking into consideration the estimation difference,
7.3. is paid by the voluntary mutual insurance fund for the beneficiary;

The law of CXVII, Year 1995

70th §(1) some kind of fringe benefits and other income shall be made under the provisions of tax 71 §. (2) referred to (1) paragraph it constitutes revenue - if the giver is the employer, a joint venture (hereinafter referred to as any of the purposes of this provision: Employers) - a)-e) below, the employee (including the Labor Code Act require that the employer of temporary workers), not personally involved members in the joint venture (this provision, benefiting from, an individual referred to 'the worker) e) revenue that purchased on an invoice issued in he employer's name, only for the employee's local travel and granted in the form of ticket.

71st § (1) individual under the terms and provisions of 70 § within the limit of benefits gained through the proceeds, after paying his footing allowance (hereinafter referred to distributor) must pay tax to 25 percent.

Act CXVII of 1995

According to Act LXXVII of 2009, reduced tax rates only apply to benefits granted in the form of cooked meal contribution and as such, non-cooked food shall be considered taxable contribution in-kind, with respect to which a tax rate of 54% and social security contribution of 27% - calculated from the original amount plus the 54% tax is to be paid. This implies an overall payment obligation of 95.6%.*

** The benefits referred to in the Act as 95,6% bear an overall payment obligation of 97,89%. This may be broken down into the following elements:
{54% PIT} + {27% social security contribution of (100+54): 41,58%} + {1.5% vocational training contribution of (100+54): 2,31%} = 97,89%

The law of CXVII, Year 1995

Relevant legislation in force
The Law CXVII., Year 1995

2009. LXXVII. Law stipulates that the low value gifts, such as tax-free allowance ceased, the low value of the taxable benefit in kind constitutes a gift, after which the tax burden is 54% and the basic allotment of 54% after tax plus 27% social security contribution which together with the amount of the allowance is 95.6 %.

Tax-free gift for the business (and representation) defined on the basis of revenue as follows. The paying corporation should take into account as item to increase the base of tax.

Benefit in kind:
69 § l) by paying for free or discounted goods supplied, services provided by taxable income allocated to specific provisions of this Act even in the absence if the individual receives a benefit of paying social security and private pension benefits, and coverage of these services by law non-tenure;
(7) of paying - if the representation, business gifts that would otherwise not exempt under the law, (5) notwithstanding paragraph - is not required to, report and pay: a) b) above are not paying for those
ab) the tax year in question, the unique value of 10 thousand HUF, not exceeding business gifts as defined on the basis of income after the tax rate under paragraph(4) calculated numbers as described in paragraph (9) 54 percent of value calculated by 5000 HUF per person;
b) the social organization, public body, religious entity, the Foundation (including the public foundation) in the case of the representation and payment of 10 thousand HUF unique value not exceeding business gifts as defined on the basis of income after (4) the rate of profit after tax, and mission-related activities incurred in the year's accounts for 10 per cent of total expenditure recorded of 54 percent, but accounted for more than the year's 10 per cent of total annual revenue of 54 percent.
(8) (7), the purpose of calculation shall be disregarded under the provisions of this Act are exempt benefits in kind e.g. allowances recorded as low-gift - value. The taxable value after the tax
(9) (7) ab) be the number of permanent establishments under the statistical average headcount during the fiscal year, and personally involved in the activities of the paying members (including self-paying for the self-employed) in the number of combined amount of salt.
(10)The purpose of E §
e) business gift: to distribute the activities of commercial, office, professional, diplomatic and religious relations within the gifts (free or discounted product, service, and only on this voucher), not including bills.

The law of CXVII, Year 1995

2009. LXXVII. Law stipulates that the services of cultural institutions (culture voucher) constitutes a taxable benefit in kind after which the tax burden is 54% and the basic allotment of 54% after tax plus 27% social security contribution which together with the amount of the allowance is 95.6%.

* The text of the Act set out in 95.6% of the total benefits paid over 97.89%.
Which is composed of the following elements:
(54% Personal Income Tax (100 +54) 27% of social security contributions: 41.58%) + ((100 +54) to 1.5% of the vocational training contribution: 2.31%) = 97.89%