During an emergency post-COVID screening provided to an employee is tax-free, but after the emergency it will be tax-free only if it is performed as part of a mandatory job aptitude examination.
During an emergency post-COVID screening test can be provided to employees as a tax-free benefit, if the employer notifies the National Tax and Customs Office on the fact within sixty days as per Subsection 1-2 Section 28/A of the Act CXCIV of 2011 on economic stability in Hungary (Stability Act). The notification can be made with the “Form of report on free product and service delivery under Section 28/A of Stability Act”.
However, after an emergency a post-COVID screening test may be provided tax-free if it is carried out as part of a compulsory extraordinary job aptitude examination (which should be carried out in accordance with the relevant ministerial decree if there has been a change in the health status of the worker, pupil or student or the job seeker which presumably makes him / her unfit to perform the given job in a non-hazardous and safe manner or to acquire or practice the profession). In this case, the post-COVID screening test is not a benefit, but is used to determine whether the damage to health caused by the coronavirus infection makes the worker unfit for work.
Another case is if the employer provides post-COVID screening test to the employee only as an option and it is not directly related to job aptitude examination. In this case, the benefit is taxed and the tax depends on the legal relationship between the parties. Therefore, if the employer does not order the screening test as above, the tax exemption does not apply.
Please contact our colleagues if you wish to have a detailed interpretation of this legislation as this newsletter offers general understanding.