Anti-immigration tax on NGOs now in effect

The 25 pc special tax that the organisations who support migration have to pay is now in effect, as Hvg.hu writes. The new law mainly affects NGOs providing legal or other aid to refugees.

The special anti-immigration tax has been introduced in June 2018, as we reported about it. The new tax policy is part of the „Stop Soros” package that is aimed against the alleged „Soros plan”, a plan to support migration to the EU – as claimed by the Hungarian government. According to the ministry, migration causes a substantial financial burden on the Hungarian government’s budget.

Based on the new government policy, organisations that help migration should bear their share of the burden by paying the 25 pc special tax.

Several foreign papers, such as Reuters and The Guardian have reported about the new anti-immigration tax and found it unsettling, similarly to the Council of Europe and the Organization for Security and Cooperation in Europe who gave a detailed opinion.

On 25 August, the bill came into effect: the first tax declaration is due by 1 September, covering the period between 15-31 August.

From this day on, all taxable organisations that do not have a Taxpayer Identification Number have to register by the Hungarian Tax and Customs Authority (NAV).

Organizations have to register at the Hungarian Tax and Customs Authority by the time they start their taxable activities: when they begin the funding or aid procedure. In case they do not yet start the activities that are taxable, they do not have to register until the initiation of these procedures.

However, government communication regarding the special tax is to be considered at least ambiguous.

On the one hand, the special tax is allegedly for sharing the financial burden caused by migration. On the other hand, according to the government, it is aiming at reducing the targeted activities.

Recently, we have shared some articles by foreign papers that expressed their concerns for the state of Hungarian politics today: The Guardian wrote about the worrying tendencies in Hungarian media freedom, while an American journalist reported about Hungary as a “failing democracy”.

Featured image: MTI/EPA/SOS Méditerranée/Guglielmo Mangiapane

Source: Hvg.hu