The tax authority prepares a draft also for licensed traditional small-scale producers and individuals subject to pay VAT
For the first time, the tax authority prepares a draft tax return for individuals required to pay VAT and licensed traditional small-scale producers for the tax year 2017, provided that these individuals had income in the tax year according to the returns and reports filed by the employers and payers and recorded by the tax authority.
The new taxpayers involved in the draft tax return shall file a tax return using the draft or self-assessment. The reason for this is that in most cases, these individuals generate revenue that is not paid by a payer and they themselves can decide what kind of cost accounting method they choose and what allowances they apply.
Individuals subject to pay VAT and licensed traditional small-scale producers (family farmers, members of family farms) shall supplement the draft tax return with the data on income from self-employed activity or licensed traditional small-scale production and the related payment obligations, that is, their draft tax return prepared by the tax authority does not become a return after the expiry of the deadline for the return.
However, if the annual income of a licensed traditional small-scale producer does not exceed HUF 600,000 and thus the producer is not required to establish an income from the income of their licensed traditional small-scale production, they will not be subjected to file a tax return.
In the case of licensed traditional small-scale producers and individuals subject to pay VAT, the deadline for filing the personal income tax return will also be changed from 25 February to 20 May (22 May 2018 this year).
Innovation related to completing private entrepreneurs’ personal income tax returns
From this year onwards, instead of the general form filler program (ÁNYK), private entrepreneurs can prepare their personal income tax return on an easier web interface not required to be downloaded (WebNYK), where they can also pay the tax.
Declaration by non-resident individuals
Non-resident individuals may, until April 30, 2018, declare that they are not liable to pay tax in Hungary on the basis of their non-residence.
In the case of the declaration, the draft tax return prepared for non-resident individuals – without the adjustment of the taxpayer – does not become a tax return after the deadline for filing the tax return.
The declaration can be made by submitting form „Nyilatkozat külföldi illetőségű magánszemély személyijövedelemadó-bevallás benyújtás alóli mentesítéséhez a 2017. adóévre” (Declaration Exemption for non-resident private individual from the personal income tax return for tax year 2017), which is also available in English on the tax authority’s web page.