Happy New Year! – What changes can be expected for 2020?

We hope that our dear readers welcome 2020 full of energy and cheerfulness, leaving all the depressing feelings behind. The 2010s are over, let’s see what kind of reforms can be expected for the new decade.

Cinema

Flying cars, utopia, dystopia, Cybertruck, new music, new memes, new fashion? In the 2020s, the following film premieres can be seen in the cinema:

• Ring of Fire (2020, 2025);
• V for Vendetta (2020);
• Johnny Mnemonic, the Future Fugitive (2021);
• The Avengers: Endgame (2023);
• Highlander 2 (2024);
• Spider-Man: Far from Home (2024);
• Repo Men (2025);
• Metropolis (2026);
• Ghost in the Shell 1995 (2029);
• Terminator 2 and Genisys (2029).

But back to the present, let’s see what this year brings.

Things that will come to an end

• By the start of the new year, we’ve said goodbye to the old banknote HUF 10,000.
• Those who keep their savings in Erzsébet Vouchers, we have bad news. From 2020, they are not worth money anymore – 31^st December 2019 was the last day of them being valid.

If…

• You are a happy mother of four children, personal income tax should not be paid anymore:

• from 1^st January 2020, the exemption of personal income tax will come into force in the case of mothers raising at least four children, along with child care allowance (GYED) for grandparents.

• You are an environmentally-conscious person, we have some good news for you.

• From 1^st January, biological components of fuels will increase; accordingly, Hungary will join the states that use environmentally friendly E10 fuel. However, consumers will not be affected by the action.

• You are a job seeking citizen of Budapest, you can use public transport free of charge in the capital thanks to the newly introduced action, starting from January.

Finances

• From 1^st January 2020, small business finance tax (KIVA) is reduced to 12%. In order to strengthen the competitiveness of domestic tourism, the VAT level of collective accommodation will be decreased to 5% from the former 18%.
• As Hungarian news portal Index reports, advertising tax will be suspended between 1^st January 2020 and 31^st December 2022.
• From 1^st January, every accommodation service provider is obliged to report guests data and city tax online – this is the so-called NTAK system.
• In January, the government will raise pensions in proportion to the rate of inflation to preserve the real value. As a result of the 2.8% increase, the average pension will rise to HUF 154.000 (~ EUR 468) from the former HUF 134.000 (~ EUR 407) from 1^st January. The retirement age will be 64.5 years in 2020.

• In 2020, the minimum wage will increase by 8%. Numerically,  this means gross HUF 161,000 (~ EUR 489). In the case of secondary qualifications, the statutory minimum wage will rise to gross HUF 210,600 (~ EUR 657).

• The price of tobacco will increase.

Loans, ‘CSOK’ family housing allowance

• From 1^st January, within the framework of village family housing allowance ‘CSOK’, in the preferred small settlements, VAT reimbursement can be demanded up to HUF 5 million (~ EUR 15,200) devoted to property construction – including expansion and renovation as well.
• 

  Read alsoUpgraded CSOK home purchase subsidy programme could attract twice as many, says expert

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  Read alsoLarge families make up one-fifth of CSOK applications

• Medications and interventions used in the treatment of infertility are provided free of charge thanks to the new government regulation. Presumably in accordance with the action plan of family protection, infertility centres have become secularised by the government.

• For those who plan to purchase eco-friendly property, a housing loan can be taken out with reduced interest.

• According to bank360.hu, in 2020, eligibility regarding family housing allowance ‘CSOK’ will be monitored by the Hungarian Tax Authority. In 2018, applicants were obliged to provide a statement about the fulfilment of certain conditions. This year, the Hungarian Tax Authority will check these, and those who wrongfully took the support will have to pay it back, along with the five-times higher central bank base rate.

Source: bank360.hu; index.hu