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Employee support could be provided tax-free for housing purposes and for the final repayment of or repayment on housing loans until the end of 2018.
After the elimination of this benefit form, the employers and employees concerned still have important administrative tasks to fulfil in order to minimize the relating tax risks.
The subsequent testing of the exemption of the support provided from tax and their actual use is important basically in order to avoid tax risk because if the employee is unable to certify to the employer within the prescribed deadline the fulfilment of the conditions of tax exemption and the complete use of the support received presenting the documents prescribed by the legal regulation, the housing support provided cannot be regarded as exempt from tax but its amount increased by 20 percent will qualify as taxable wage income on which both the employer and the employee will have tax and contribution payment obligation.
If the conditions of tax exemption are subsequently revealed not to be satisfied in the case of a housing support of 5 million forints disbursed tax-free earlier to a certain employee, the following public burdens will be payable:
|Total amount of housing support||5 000 000|
|Tax base (amount of the support provided increased by 20%)||6 000 000|
|Total amount of public burdens payable by the employee (33.5%)||2 010 000|
|Total amount of public burdens payable by the employer (21%)||1 260 000|
|Total wage cost||6 260 000|
|Total amount of public burdens payable subsequently||3 270 000|
It must be noted that during the audits, the inspectors of the tax authority may ask for certification of the legitimacy of the support provided tax-free for many years to come. The ad-hoc obtaining of the missing documents during an audit is, although not impossible, may be very difficult, especially in respect of employees who left the company in the meantime.
We offer our service to employers who do not wish to leave the testing of the fulfilment of the conditions of tax exemption of the housing support granted tax free earlier to the very last minute and need an expert team providing professional assistance in the testing of the correctness and completeness of the documentation.
Upon request, our qualified experts with practical experience carry out comprehensive tests of the documents submitted by employees.
As part of the testing of documents, our expert team fulfils the following tasks:
In the case of specific requests, we make special offers depending on the number of employees and supports provided.
Contact our expert directly or send us an offer request!