The Kata law was published in the Magyar Közlöny, according to the accountants, there is a huge mistake in it


After it was signed by Katalin Novák, the law on siphoning off small taxpayers, passed by the Fidesz majority in the parliament with record speed, appeared in the Magyar Közlöny.

In a statement of the National Association of Hungarian Accountants, Vice President Zsolt Ruszin writes that there is a huge error in the new law, because

the transition to flat-rate taxation cannot be chosen as of September 1, 2022.

The legal problem is caused by the term “tax year” in the section on the choice of flat-rate taxation. The old tax law also mentions the Szja tv for the “tax year. flat-rate taxation” (§§ 3, Katv.), which as a general rule means flat-rate taxation starting on January 1, however, the old tax law regulated the transition to flat-rate taxation without mentioning the tax year (§25, (5) of Katv.).

The part of the new Kata Act on the transition to flat-rate taxation (new Kata tv. § 15. (2)) will come into force already on 08.01.2022, this undermines the relevant passage of the old Kata Act, so flat-rate taxation would not be an option from 09.01.2022, only retroactive to 01.01.2022 or from 01.01.2023.

The announcement also points out that the justification of the law makes the legislative error contrary to the government communication even clearer because the retroactive choice of the flat tax would no longer apply to the tax year, but to the year 2022.

Flat-rate taxation retroactive to 01.01.2022 would raise a number of questions regarding legal certainty, starting with the word “TAXER” on the invoices, through the special tax above the 3 million thresholds, to the point that a tax returner would be missing 8 months of tax return at the same time and would have to pay significantly more tax, retroactively.

In the case, the National Association of Hungarian Accountants sent its comments to the President of the Republic on Saturday night, but no response was received, the statement reads.

Leave a Reply

Your email address will not be published. Required fields are marked *