The related legislation has let private individuals offer a specified part (1% +1%) of their personal income tax to a civil organisation, and/or to a church or a highlighted state program.
In case of not allocating 1% +1% of the income tax in this way, that amount would remain in the state budget, according to the Act on Public Finance. It is not necessary to make an offering for both mentioned groups. In case of donating for one group only, the declaration is also made about only one of the 1% of the personal income tax.
Who can make a declaration about the 1% disposition?
Anyone who submits a personal income tax return, a tax declaration or a simplified return or fulfil the tax liability met by the employer’s tax assessment.
What is the amount to reallocate?
The 1% disposition is 1% of the consolidated tax base reduced by the benefits and all transfers corresponding with the declaration of a voluntary mutual association or a pension fund.
To which organizations and institutions can the 1% be transferred?
There are two groups of beneficiaries to choose from, only one can be chosen from each group, and the 1+1% cannot be divided or combined.
Group 1: civil beneficiaries (with the indication of the tax number) – non-profit associations, private and public foundations, listed on the following website:
Group 2: ecclesiastical beneficiaries (with the indication of the four-digit technical number) – including all churches corresponding with the regulations of Act CCVI of 2011, and an official and highlighted state program, defined by the Parliament – National Talent Program (1823) for the year 2012 - all listed on the following website:
(In case of electing a beneficiary from only one group, only one declaration is to be submitted - the 1% from group 1 shall not be redirected to a beneficiary from group 2 and vice versa. In case of selecting two beneficiaries from the same group, both declarations become invalid.)
How can a declaration be made about the 1%?
In case of employer’s tax assessment:
Private individuals can make a declaration towards their employer on form „14EGYSZA” which is institutionalized by the tax authorities (or on a data sheet containing the equivalent data). The sealed envelope, containing the declaration, marked with the taxpayer’s identification number and signed reaching over the adhesive surface can be given to the employer until the 11th of May 2015, at the latest. When giving the envelope to the employer, the accompanying list (prepared by the employer) also must be certified by the signature of the employee. (The employer must send the envelope with the accompanying list to the tax authorities until the 20th of May 2015, at the latest).
On a self-assessment basis, in case of submitting a ‘1453’ tax return:
The private individual can submit a declaration by filling out a part of the tax return form (EGYSZA sheet), or with the usual method: in a sealed envelope, marked with the taxpayer’s identification number and signed reaching over the adhesive surface, the declaration can be submitted by the individual as an attachment of the tax return.
In other cases:
In case of not allocating 1+1% of the personal income tax, when submitting the tax return, there is a possibility to fill out the form „14EGYSZA” with the use of a program (ÁNYK-AbevJava), published on the website of the national tax authority (nav.gov.hu) until the 20st of May 2015, at the latest. The declaration form must be forwarded to the tax authorities by post or by person (in a sealed envelope, marked with the taxpayer’s identification number) or electronically as an electronic form.
The declaration of the private individual is invalid if the declaration is not sent until the set deadline: on a self-assessment basis not sent to the national tax authority until the 20st of May 2015; and in case of employer’s tax assessment not given to the employer until the 11th of May. The declaration is also invalid if it contains an incorrect tax number/technical number, filled out unreadable or in case of the taxpayer not paying his payable back taxes until the legal deadline (20.05.2015)!
The envelope, containing the declaration, is only valid if:
- the envelope, containing the declaration, is sealed with the declarant’s name and taxpayers' identification number on it and
- the private individual has signed the sealed envelope on the back, reaching over the adhesive surface, before giving it to the employer.
How can the offering be traced?
From the 1st of January of the next year, the chosen beneficiaries and the received 1(+1)% amount can be followed on the website of the National Tax and Customs Administration of Hungary (www.nav.gov.hu).