The rules for reimbursement of commuting expenses has changed from 28 January 2023. According to Government Decree No 16/2023 (I.27.) - during the state of emergency declared because of the conflict in Ukraine - contrary to the rules of the Personal Income Tax Act, the income that the employee receives from the employer as reimbursement for commuting to work in accordance with the government decree on commuting (including, in particular, reimbursement for commuting to work with one's own vehicle) should not be taken into account when calculating income from activities other than self-employment.

This means that under the Decree, contrary to point b) Subsection (2) Section 25 of Act CXVII of 1995 on Personal Income Tax, the income that the employee receives from the employer as reimbursement for commuting to work i.e. the amount of HUF 30 per kilometer that the private person receives for the round-trip distance measured on a public road

a) between the workplace and the permanent or usual place of living for the days spent at work, and/or
b) for a trip home between the workplace and the permanent place of living

should not be taken into account when calculating income from activities other than self-employment.

The 60% of HUF 15 reimbursement, i.e. HUF 9, previously determined by Subsection (2) Section 25 of the PIT Act applies if

  • there is no public transport between the employee’s permanent or usual place of living and the place of work;
  • due to the employee’s work schedule, he/she cannot use public transport, or can use it only with a long wait;
  • the employee has limited mobility and is therefore unable to use public transport, including the case where the employee’s journey to work is ensured by a relative;
  • the employee has a child who uses nursery care and/or is under the age of ten studying in a public educational institution.

The employer was allowed to decide at its discretion whether to pay the difference between HUF 9 and HUF 15 as reimbursement to the employee who meets the above requirements.

The Decree raises the maximum value of HUF 15 to HUF 30 (for the time being during the state of emergency).

For the month of January 2023, in the case of reimbursement of expenses paid for commuting to work, HUF 30/km and the 60% of it, which is 18 HUF/km, may already be applied, but it is not yet mandatory to reimburse the cost of commuting in this month in the increased amount.

However, the increased minimum amount of HUF 18/km must be applied to reimbursements paid for the month of February 2023 (maximum HUF 30/km).

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