Subject of company car tax
According to the main rule, company car tax is payable on passenger cars (with a Hungarian number plate) that are not in the ownership of a private person and listed in the domestic authority register. Company car tax is only payable on passenger cars in the ownership of private persons or passenger cars with a foreign number plate in the ownership of non-private persons listed in the authority register if costs or expenditures are accounted for on the company car.
Payer of company car tax
According to the main rule: the owner registered in the register of vehicles but, for example, in the case of passenger cars in financial lease, occupational lease, the tax is payable by the lessee under the financial or occupational lease.
No company car payment obligation applies to:
- flat rate taxpayers, payers of simplified entrepreneurial tax (EVA) and private entrepreneurials paying tax under the small taxpayers' flat rate tax (KATA) regime, and
- on the passenger car of private persons applying flat rate taxation with regard to paying catering/accommodation activities.
Tax exemption in the case of company cars
Among others, a passenger car is exempt from tax if:
- it is equipped with an apparatus giving a differentiating signal;
- it is operated by a church legal person primarily for religious or other directly related activities;
- it was acquired exclusively for the purpose of resale by a person or organization engaged in the trading of passenger cars in a businesslike manner;
- it is used exclusively for the transportation of deceased.
Rate of company car tax
The monthly tax rate is determined per passenger car based on the performance of the passenger car in KW and its environment protection classification.
Avoidance of double taxation
From the company car tax payable quarterly, taxpayers may deduct the motor vehicle tax imposed by the municipality tax authority on the given passenger car for the months of the quarter in which both company car and motor vehicle tax liability apply to the passenger car in question provided that the taxpayer duly fulfilled its motor vehicle tax payment obligation.
If different persons are obliged to pay the two types of taxes, the right of deduction does not apply.
Arising of and return filing on company car tax
By the main rule, tax is payable for the period from the first day of the month following the date of acquisition of the title car or the starting date of financial lease or occupational lease until the last day of the month in which the passenger car is alienated by the owner or returned by the lessee of the financial lease or occupational lease. However, in the case of a passenger car with a Hungarian number plate that is in the ownership of a private person or is leased under financial or occupational lease by a private person, tax becomes payable from the first day of the month following the first month in which expense was accounted for on the passenger car by the owner or lessee. Tax payment obligation ceases on the last day of the month in which the private person accounts for expense with regard to the passenger car.
Tax returns must be filed with the state tax authority quarterly until the 20th day of the month following the given quarter.