Mazars Hungary Tax Newsletter No. 01/2009

Currently, the rules on company car tax are included in the Act on Personal Income Tax. However, the new regulation will be moved into the Act on Vehicle Tax from 1 February 2009. According to the new legislation, private usage of a company car will not be classified as a benefit in kind within the meaning of the Act on Personal Income Tax.
Moreover, neither social security contributions nor unemployment contributions have to be paid on the private usage of company cars. The aim of this modification is to change the company car tax regime through significantly reducing the tax burden while increasing the number of taxpayers. The purpose of this Newsletter is to call your attention to the most important features of the new regulation.