Weekly newsletter

Online Income Tax Contributions to Charities Up 10 % in 2021

MTI-Hungary Today 2021.07.19.

Some 1.2 million taxpayers in Hungary used the online tax returns system to donate one percent of their income tax to charities or churches this year, up 10 percent from 2020, a government official said on Sunday.

Under Hungary’s tax laws, taxpayers are offered an opportunity to donate one percent of their income tax to NGOs and another percent to churches.

Taxpayer donations are an enormous help to churches and civil groups, finance ministry state secretary András Tállai told MTI, adding that the simplicity of the online tax returns system was a likely factor in the jump in the number of people who used the platform to donate this year.

In principle, taxpayers eligible to donate part of their income tax to some kind of organisation could contribute a total of over 40 billion forints (EUR 111.3m) this year, he said.

Tardiness and Disinterest Hurts Civil Organizations and Churches
Tardiness and Disinterest Hurts Civil Organizations and Churches

According to the National Tax Authority (NAV), in 2019, 1.69 million people opted to offer 1+1% of their Personal Income Tax (PIT) to non-profit organizations and churches. This means that only a third of the taxpayers offered their PIT to charity this year. In Hungary, tax-payers can request that 1% of their previous year’s paid […]Continue reading

The government’s measures aimed at reducing tax bureaucracy have also applied to taxpayer donations, Tállai said. Donating to NGOs, for example, has been made easier with the list of eligible organisations being available on the tax authority’s website, the state secretary said.

Meanwhile, those who donated to churches last year will automatically have 1 percent of their taxes sent to the same church again this year unless they rescind their donation or enter in a new beneficiary, he said.

Featured photo illustration by Tamás Vasvári/MTI