Changes in taxation in 2008

Let us see what are the changes in tax regulations that will have an effect on the HoReCa sector. Rules related to tax allowances have been amended. Basic and supplementary allowances fused into a single allowance which cannot exceed HUF 11,340. The new minimum wage is HUF 69,000 which is now subject to income tax amounting to HUF 1,080. Regulations related to refunding the expenses of employees have also changed. Meal coupons worth HUF 6,000 are exempt from taxation and coupons for warm meals are exempt up to a value of HUF 12,000. In case employees receive a subsidy for schooling from their employer, This will be exempt from taxation up to 30 per cent of the minimum wage. The value of holiday vouchers has also gone up automatically with the minimum wage. The proportion of income which can be exempted from taxation for the purpose of accruing development funds has increased significantly. 50 per cent of the total income up to a maximum of HUF 500 million may be designated as such. However, strict conditions apply to the use of such funds. For small enterprises, the limit for the preferential 10 per cent tax rate has increased from HUF 5 million to 50 million. The 6 per cent tax saving is regarded as a „de minimis” subsidy, which may not total more than EUR 100,000 over 3 years. The regulations for VAT refund have become somewhat more favourable than in the past. Sanctions for the sale of regie products of illegal origin have become harsher, with not only a fine being imposed but also the obligation to make inventory of current stock on a daily basis.