The Hungarian Catering Industry Association welcomes the decision of the Ministry of Tourism and Culture regarding the service charge

The proposals regarding tips are evaluated as a favorable step

The measure will allow a maximum service charge of 20% for corporate events and 15% for private consumption. All this is in line with the proposal of the MVI and other professional organizations, which will contribute to the further whitening of the sector and the retention of the workforce. Service charges paid under more favorable tax conditions compared to wages enable those working in the hospitality industry to achieve a higher average income. In addition, we evaluate the proposals regarding tips as a positive step, which will ensure their tax-free treatment regardless of the method of payment. Following the adoption of the legislative amendments, the MVI will update its information publication on tips and service charges, which will also be available on the industry association’s website.