The late payment fee and the default interest

Today, we will talk about the conditions under which a taxpayer must pay a late payment fee; as well as when the tax authority must pay default interest. You have read it right; it means that there are also cases when the tax authority pays the taxpayer. We are going to take a look at the self-audit allowance too; as well as see in which situations the late payment fee can arise.

The late payment fee arises in the event that a taxpayer does not fulfill his tax payment obligation by the statutory payment deadline.

In case of late payment of the tax; a late payment fee must be paid from the day after the due date (as the starting day). The rate of the late payment fee is one 365th of the central bank base interest rate effective at the first date of default or the date of early use (the date of charging) plus five percentage points for each calendar day.

The late payment fee of less than HUF 5,000 is not required to pay.

There is no late payment fee for the period for which the taxpayer proved his delay. There is only chance for proof if the delay was caused by an unavoidable external cause.

When charging the late payment fee; the base of the fee must be considered separately for each tax and budget support; if they are recorded on the same account.

The basis of the late payment fee must be reduced by the amount of the overpayment registered with the same tax authority and existing in connection with another tax at the time of the due date. Tax debt for which payment relief has been granted must be ignored.

The late payment fee and automatic payment facilitation

If the taxpayer fails to pay the due instalment; the automatic payment relief becomes invalid; and the debt becomes due in a lump sum. In this case; the state tax authority will charge a late payment fee for the remaining debt from the original due date.

The late payment fee and the risky taxpayer

If the tax authority establishes a late payment fee for a tax difference discovered during a tax audit and we are risky taxpayers; then an increased amount of late payment fee must be paid.

Self-audit allowance

If the taxpayer corrects the tax and budget support in accordance with the self-audit provisions; he pays a self-audit allowance.

Default interest

If the tax authority fulfils the allocation late; it pays default interest at the same rate as the late payment fee for each day of the delay. No default interest is due if the payment is denied by the failure of the taxpayer; or the person obliged to provide data.

If the decision of the tax authority violates the law; as a result of which the taxpayer has a claim for reimbursement; the tax authority will pay default interest on the amount to be refunded at the same rate as the late payment fee.