SZÉP card rules
The Széchenyi Recreation Card (Széchenyi Pihenő Kártya or SZÉP card) is an electronic voucher card that allows employees to use their fringe benefits easily, quickly, conveniently, and securely. There are 2 subaccounts - the 'Accommodation' and the 'Active Hungarians'.
The entire recreation budget applies to the 'Accommodation' subaccount, including the value limit and the tax liability. This means that up to HUF 450,000 per year can be transferred to the account as fringe benefits.
In addition, the annual limit of the 'Active Hungarians' subaccount is HUF 120,000, therefore HUF 10,000 per month could be transferred as a fringe benefit, and this amount is not included in the HUF 450,000 recreational budget. A maximum of HUF 60,000 per calendar half-year may be transferred to the subaccount as a fringe benefit. In order for the employee to receive such a benefit for the second calendar half-year, a declaration should be issued to their employer that they have already spent at least 80% of the amount received in the previous half-year.
SZÉP card taxation
For fringe benefits, the reduced tax rates for SZÉP cards will remain unchanged from 1 January 2023. As a fringe benefit, 28% tax (social contribution tax and VAT) is payable.
The part above the tax-advantaged threshold is taxed as a certain defined benefit (with a tax burden of 33.04%).
