In order for NAV to qualify a taxpayer reliable, all of the following conditions have to be fulfilled:
- The tax performance of the company in the year concerned must be positive.
- The amount of default and excise penalties due in the two years preceding the year concerned may not exceed one percent of the entity's tax performance assessed for the year concerned.
- No execution procedure was initiated against the company in the year concerned and in the four preceding years. This does not include transfers and the exercising of the withholding right.
- The company must be in operation for three years or must qualify as a VAT-registered taxable person for three years.
- The total amount of tax differences established by NAV to the debit of the taxpayer in the year concerned and in the five preceding years may not exceed three percent of the tax performance of the taxpayer assessed for the year concerned.
- The company was not subject to bankruptcy, liquidation or forced cancellation procedures in the year concerned and in the five preceding years.
- The company did not undergo tax number cancellation in the year concerned and in the five preceding years.
- The company may not qualify as a risky taxpayer.
- The company may not have net tax debt exceeding 500 thousand forints.
- A taxpayer group will qualify reliable if all of its members are reliable taxpayers.
- Public limited companies are exempt from the condition of three years of continuous operation.
Benefits coming with reliable taxpayer status:
- In the case of reliable taxpayers, the cap on the penalty which may be imposed on the taxpayer is 50 percent of the tax and default penalty otherwise chargeable and, in the case of fixed rate penalties, the maximum penalty that may be imposed on the taxpayer is 50 percent of these fixed rates.
- Tax audits may last for a maximum of 180 days.
- Reclaimed value added tax is disbursed by the tax authority to public limited companies within 20 days and to reliable taxpayers within 30 days.
- Upon the taxpayers electronically filed request, HU TA will grant a payment relief of maximum 12 months with no fees payable once a year in relation to tax debts registered by it (automatic payment relief). This payment relief may only be authorized if the applicant's net tax debt does not exceed 1.5 million forints.