We’ve collected the most important information about the draft PIT return of the Tax Authority and what to do about it.
For whom is the draft tax return automatically prepared by the Hungarian Tax Authority?
- private individuals
- licensed traditional small-scale agricultural producers
- private individuals subject to pay VAT
- sole proprietorships
For whom is the draft tax return not prepared by the Hungarian Tax Authority?
- who, in the tax year concerned, had only received income that is not to be declared and about which the payer is not obliged to disclose information
- who has not obtained their income from a payer
They must prepare a self-assessment tax return.
Licensed traditional small-scale producers, taxpayers subject to fixed-rate tax of low tax-bracket enterprises or simplified business tax, individuals liable for payment of VAT and sole proprietors are required to file their PIT return independently, they may be done by supplementing or filing their draft tax return available on the web interface.
What is included in the draft tax return?
The draft tax return is prepared by the Tax Authority on the basis of the data provided by the employer/payer of the private individual and it includes:
- income subject to PIT and the tax on that income
- income taxed as simplified contribution to public revenues and the tax on that income
- the taxable part of income from simplified employment
- the income that is the basis of social contribution and the social contribution tax to be paid
acquired by the private individual in the tax year concerned.
How to get the draft?
a) If you have customer portal registration
The personal income tax return interface 19SZJA has been available since January 7, 2017. The web-based form-filling system has already been available for those preparing a self-assessment tax return at government portal www.magyarorszag.hu or on the electronic PIT site of the Tax Authority at (www.nav.gov.hu/szja/szja).
The completed returns can be sent conveniently electronically through the customer portal (Ügyfélkapu in Hungarian). You can check the draft tax return prepared by the Tax Authority from March 16, 2020 and may modify it on the registration interface of the customer portal or on the electronic PIT site available through https://www.nav.gov.hu/nav/szja/szja and www.magyarorszag.hu.
If you don’t approve/supplement/modify your draft tax return until May 20, 2020 or do not file an 19SZJA self-assessment tax return, your draft tax return will become your final tax return.
b) If you do not have customer portal registration
In the absence of a customer portal registration, if requested until April 15, 2020, the Tax Authority will send you a draft tax return. After April 15, 2020, a draft tax return can be requested personally at one of the Tax Authority’s customer services.
If you do not want to make use of the option of requesting a draft tax return, then you should either make a self-assessment tax return and file it until May 20, or approve the draft prepared by the Tax Authority automatically, without checking it (not recommended).
You can submit your request in the following ways:
- by SMS sent to phone number +36 30 344 4304. In the message, you must give your tax ID and date of birth as follows: SZJAspacetaxIDspaceyearmonthday);
- on an application form available from the Tax Authority’s website (https://www.nav.gov.hu/eszja/eszja)
- on a standard form called „Kérelem az adóbevallási tervezet papír alapon történő átvételéhez” (Application for receipt of a draft tax return on paper) (BEVTERVK)
- in a letter in free format (including your tax ID and date of birth)
- personally in a customer service office
- through the General Information System via telephone (phone number: 1819)
When is it necessary to amend or supplement the draft tax return?
If the taxpayer
- was a licensed traditional small-scale agricultural producer and they had taxable income from their activity, unless there was no need to establish revenue from that income and, therefore, they are not subject to filing a return in this context
- is a private individual subject to pay VAT
- is a sole proprietorship
- has chosen an itemized flat-rate tax for their accommodation service
- requested deduction of costs in their tax advance declaration made to the payer (employer)
- earned income from swap transactions
- is subjected to pay a penalty for difference in accordance with the rules on payment of tax advance
- earned income not from a payer or other income in connection with which the taxpayer shall establish the tax or tax advance
- is entitled to modify the tax established by the payer in their tax return
- their income was from abroad or (can also be) taxed abroad
- is a non-resident individual and did not make a declaration of exemption
- earned income from a controlled capital market transaction if the income is not established or not established solely on the basis of the certificate of an investment service provider considered to be a payer
- recognizes tax deducted from the interim dividend taken before the tax year concerned against the tax on the approved dividend
- shall pay a special tax in connection with an income according to the simplified contribution to public revenues or has taken over the establishment, declaration and payment of the simplified contribution to public revenues the taxpayer or the payer is to pay from the payer
- shall pay advance for social contribution tax in connection with an income
- shall (may) establish their tax in their tax return under a special provision of the law
Why is it always recommended to review your draft tax return?
It is important to review the draft tax return and, if necessary, supplement it with, for example, the following allowances and disposals:
- income not received from a payer (e.g. rent of a real estate received from a private individual)
- income from a non-resident payer
- sale of movables
- sale, rent of real estate, etc.
- family allowance not requested during the year
- first marriage tax allowance not requested during the year
- personal allowance not requested during the year, etc.
- membership fee paid to a voluntary pension fund
- membership fee paid to a voluntary health or mutual aid fund
- pension insurance, etc.
How to approve / modify the draft tax return prepared by the Tax Authority
The draft tax return is a statement of your income earned in 2019, which is compiled by the Tax Authority from the information received from your employer/payer. The Tax Authority calculates for you the tax on your income, takes into account the tax advance deducted during the year and the benefits recognized. The draft tax return includes the balance of the these that can be zero, tax to be paid or an amount refundable for you. You can modify or approve the draft until May 20, 2020. If you do not modify anything in the draft, it is considered to be your tax return after May 20.