Japanese Service Group News


Japanese Service Group News

Let us take the opportunity to draw your attention to Deloitte’s newsletter dedicated specifically to our Japanese Clients. Our aim is to provide you with the latest information regarding the Hungarian tax legislation changes relevant to Japanese businesses on a quarterly basis or upon important modifications.


Personal Income Tax amendments in Hungary

*For the Japanese translation please click here.

Tax amendments as of 1 January 2017

Non-wage benefits

There will be significant changes in in kind benefits provided to employees as of 1 January 2017. Benefits that can be provided to employees with an overall tax cost of 34,51% will be limited to the following items:

  • Cash benefits of up to HUF 100,000 annually
  • Széchenyi Recreation Card (SZÉP Card) for which the annual limit of HUF 450,000 will remain unchanged

The vast majority of the benefits that currently are provided to employees (e.g. Erzsébet vouchers, workplace catering, schooling assistance, local travel passes, etc.) will no longer qualify for the preferential (34.51%) tax treatment. Employers will still be able to provide these in kind benefits to their employees, but only with tax costs of 49.98% (if certain criteria meet).

Supporting workforce mobility

The new regulation contains significant changes to facilitate the mobility of workforce as of 1 January 2016:

  • In case of commuting to work using one's own car, the amount of tax exempt kilometre based expense reimbursement is increased from HUF 9 to HUF 15.
  • Tax exempt benefits are extended by the modification of the concept of workers' hostel.
  • Housing benefit provided to the employees to facilitate mobility within the country is tax exempt up to 15%-40% of the minimum wage on a monthly basis (depending on the term of mobility) if several criteria are fulfilled.

Amendments to the Labor Code regarding expatriates

The Hungarian Parliament amended three different Hungarian Acts to implement the rules set forth in Directive 2014/67/EU to ensure that in certain aspects the same rights are acquired by employees of a foreign company working in Hungary as by the employees of a Hungarian company.

The amendments to the legislation impose significant additional administration obligations on the Hungarian and the foreign company to ensure compliance with the new rules. The Hungarian companies should inform the foreign company about the minimum rules for working in Hungary and should ensure that specific documentation in relation to the assigned individuals could be reached at the Hungarian company. Moreover, the foreign employer should appoint and report contact persons to the National Labour office.

Common Reporting Standards, CRS

Hungary recently introduced a legislation in line with the EU regulation and the OECD standard on the automatic exchange of banking information (the so-called Common Reporting Standards, CRS) that is applicable for 79 countries so far, including Japan and Hungary. The primary goal of the CRS rules is that the tax authorities of the involved countries exchange information about the financial accounts of persons being resident in that country.

Hungarian banks have to perform a due diligence procedure in order to determine the tax residence position of their Japanese national clients as part of their on-boarding procedure. If the Japanese individuals are considered to be Hungarian tax residents during their stay in Hungary, their Japanese bank account information (i.e. balance of the bank account; interest, dividend, capital gain earned) could be provided to the Hungarian tax authority.




  • 現金及び現金同等物による経済的便益は年間100,000HUFまで
  • SZÉP Cardにより経済的便益は従来通り年間450,000HUFまで




  • 自家用車を業務上利用した場合において、走行キロ数に応じて税務上免税となる費用精算が行われるが、1キロ当たりの精算金額の上限が9HUFから15HUFとなる。
  • 国内における労働人口の流動性を高めるため、被雇用者に対する国内住居費用に関する経済的便益は、各種条件を満たすことで期間に応じて月間最低賃金の15-40%まで認められる。







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