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Hungarian Tax System - Declaration of the Income and Payment of the Tax

By bencel
October 3rd at 7:50am

The private individual does not need to declare the income from the lease of arable land, if it originates from the payer and the payer deducted the tax, or if the income from the lease of the arable land is exempt of tax. Pursuant to Section 176 (4) of Act XCII of 2003 on the Order of Taxation (hereinafter: Taxation Act) the tax must be declared and paid to the municipal tax authority responsible for the place where the land is located. If the land is situated on the administrative area of Budapest, the notary of the City of Budapest is the municipal tax authority. In respect of a private individual receiving income from the lease of land located within the area of competence of more than one municipal government, the tax must be declared and paid separately to each municipal tax authority concerned.5 If the income from leasing land is received from a payer, the tax on such income (rent or land allotment) shall be assessed, deducted, declared and paid by the payer. A payer shall not be subject to the obligation of tax assessment where the lease agreement concluded with the private individual is for a term covering the minimum duration for tax exemption.6 The payer must issue a certificate to the private individual on the rent paid by them and on the deducted tax. A payer shall pay the tax deducted from the income received from the lease of land by the 12th day of the month following payment and shall submit a tax return on deducted taxes by 25 February of the year following the tax year, to the municipal tax authority responsible for the place where the land is located . If the payer neglected to deduct the tax or if the payer paid the rental fee in kind, such private individual shall pay the 16 per cent tax by the 12th day of the month following the quarter in which the income was received. If the lessee is a private individual, the lessor private individual is obliged to assess, declare and pay the tax on the rent. The declaration must be filed and the tax must be paid to the municipal government responsible for the place where the land is located on the prescribed form by 20 March of the year following the year in which such income is received



http://en.nav.gov.hu/
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