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Act CXXVI of 1996
On the Use of a Specified Amount of Personal Income Tax in Accordance
with the Taxpayer’s Instruction
Act CXVII of 1995 on Personal Income Tax (hereinafter referred to as the “Income Tax Act”) granted
private individuals the right to instru ct in a statement to have a specific portion, as determined by another
law, of the tax paid be transferred in the year following the tax year (the year of the instruction statement)
to a designated beneficiary or beneficiaries as instructed. The Parliament hereby passes the following Act
on the procedural rules enabling private individuals to exercise this right, the extent of the portion of the tax
which is the subject of said instruction and on the sphere of beneficiaries:
Section 1.
(1) With due consideration of the provisions of Section 45 of the PIA, for the purpose of this Act, the
amount that remains after the deductions of the allowances and credit transfers mentioned in Section 45 of
the PIA from the tax amount due on the consolidated tax base, as shown in the private individual’s tax
return or in the statement serving as a tax return shall be regarded as paid tax, on condition that:
a) the private individual has paid this tax before the deadline prescribed for filing, or if the tax authority
made any corrections in the tax return resulting in higher tax liability for the taxpayer, before the deadline
prescribed for the payment of such extra tax liability, or
b)
c) if upon the taxpayer’s request, the tax authority has granted authorization for deferred payment or
payment by a maximum of 12 monthly installments, and the private individual in question has paid the tax
and all additional charges in full in compliance with the terms and conditions laid down in the tax
authority’s said authorization.
(2) The tax shall be registered as paid on time if the ta xpayer has installed in his tax return, if filed in due
time, an instruction for the transfer of an amount sufficient to cover his tax liability from another account, if
the balance of that account is in fact sufficient to cover the sum indicated at the time of transfer.
(3) Furthermore, the tax shall be registered as paid if the tax liability shown in the tax return – after the
deductions of the allowances and cr edit transfers mentioned in Section 45 of the PIA from the tax amount
due on the consolidated tax base – is zero.
(4) Private individuals may file separate statements of instruction to donate
a) one per cent of the paid tax to a beneficiary selected from among those described in Section 4,
b) and another one per cent to a beneficiary selected from among those described in Section 4/A.
(5) Each one per cent donation may only be donated in its entirety to one selected beneficiary each from
Section 4 or from Section 4/A.
Section 2.
(1) If a private individual has given instruction for the transfer of at least one of the one per cent
admissible donations of the tax paid and such instructions have been carried out, the amount transferred
under such instruction may be modified if it results in at least one thousand forint increment in the amount
to be transferred to each designated beneficiary, and if before 31 July of the year that follows the year to
which the private individual’s statement of instruction pertains:
a) the private individual has paid the excess amount of tax demanded in a final resolution adopted in
conclusion of a revision by the tax authority, or
b) the private individual has submitted a self-revision and paid the extra tax accordingly.

(2) The tax authority shall transfer, by 30 September of the year that follows the year to which the
statement of instruction pertains, one per cent of the excess amount of tax defined in Paragraphs a)-b) of
Subsection (1) above to the beneficiaries referred to in Subsection (1) of Section 4, and shall supply
information on this payment to the special appropriation chapter defined under Paragraph b) of Subsection
(1) of Section 4/A. The ministry directed by the minister in charge for the coordination of contact with
religious organizations shall effect the transfer of one per cent of the excess amount of tax defined in
Paragraphs a)-b) of Subsection (1) of this Section to the beneficiaries referred to in Paragraph a) of
Subsection (1) of Section 4/A in acco rdance with Subsection (6) of Section 6. The transfer may be carried
out only if the tax amount on the consolidated tax base and the amount of deductions can be clearly
determined from the resolution of the tax authority or from the private individual’s self-revision referred to
in Paragraph a) and b) of Subsection (1), respectively.
(3) If the tax amount for the consolidated tax base shown in the tax return containing the private
individual’s statement of instruction following the modification, self-revision or revision by the tax
authority – after the deductions of the allowances and credit transfers mentioned in Section 45 of the PIA –
is lower than the amount declared or established, then the portion of the difference, as described in
Paragraphs a)-b) of Subsection (4) of Section 1, if such difference is at least 1,000 forints per beneficiary
and if the instructions have been carried out, shall be paid by the private individual on the strength of a
resolution by the tax authority.
Section 3.
(1) The state tax authority shall eff ect transfer of the sums determined according to Sections 1 and 2 to
the beneficiaries defined in Section 4 based on the data and information contained in the relevant statement
of instruction and in the tax return.
(2) Donations to the religious organizations defined under Paragraph a) of Subsection (1) of Section 4/A
shall be transferred by the ministry directed by the minister in charge for the coordination of contact with
religious organizations. The sums donated to the special appropriation chapter defined under Paragraph b)
of Subsection (1) of Section 4/A shall be transferred according to Subsection (9) of Section 6 by the bodies
vested with powers to control th e budgetary chapters appropriated for the objectives set out by the
Parliament.
(3) The transfers referred to in Subsections (1) and (2) shall not be carried out if the amount involved is
less than 100 forints fo r any one beneficiary.
Section 4.
(1) For the purpose of this Act ‘beneficiary’ shall mean:
a) the following:
aa) any non-government organization (with the exception of political parties, insurance associations and
organizations representing the interests of employers and employees), pursuant to Act II of 1989 on the
Right of Assembly that have been registered by final decision of the court at least two years prior to the
first day of the year to which the private indi vidual’s statement of instruction pertains, and
ab) any foundation that has been registered by final decision of the court at least two years prior to the
first day of the year to which the private indi vidual’s statement of instruction pertains, and
ac) any priority non-profit organization, non-governmental organization and public foundation that have
been registered as priority non-profit organizations by final decision of the court at least one year prior to
the first day of the year to which the private individual’s statement of instruction pertains, or previously if
they satisfied the conditions set out in Subparagraphs aa)-ab),
and according to whose charter or instrument of incorporation, they are in fact engaged in the activities
specified in Paragraph c) of Section 26 of Act CLVI of 1997 on Non-Profit Organizations (hereinafter
referred to as “NPO”) for at least one year – without any interruption – prior to the first day of the year to
which the private individual’s statements of instruction pertains; b) the Hungarian Acad emy of Sciences;
c) the Hungarian Scientific Research Fund (HSRF);

d) the national collections listed under Schedules Nos. 2 and 3 of Act CXL of 1997 on Museum
Institutions, Public Library Services and Cultural Education and the following other cultural institutions:
1. the Hungarian State Opera,
2. the Hungarian National Archives,
3. the Széchenyi National Library,
4. the Hungarian Motion Picture Archives,
5. the Neumann János Center for Multimedia Applications and Digital Library;
e) national museums;
f) organizations providing library, archive and museum services or engaged in other cultural and artistic
activities the operations of which, in any of the three years preceding the first day of the year to which the
private individual’s statement of instruction pertains, had been subsidized by the local authorities, national
or local minority self-governments, or by the central budget and which ar e not classified under any of the
above-specified categories;
g) the institutions of higher learning listed under Schedule No. 1 of Act CXXXIX of 2005 on Higher
Education.
(2) Among the candidates listed under Paragraph a) of Subsection (1), only those organizations may be
beneficiaries that:
a) are established in Hungary, and
b) operate in the interests of the domestic communitie s, or of ethnic Hungarians living outside the
country, and
c) is in compliance with the criteria specified in Paragr aph d) of Subsection (1) of Section 4 of the NPO –
and consequently with Paragraph d) of Section 26 -, in accordance with their charter or instrument of
incorporation, and
d) have filed a statement as to having no outstanding public debts – for which any deferment of payment
and payment facilities was granted – between 1 August of the year to which the private individual’s
statement of instruction pertains and the date of its own statement, and
e) have filed a statement in confirmation that the organization has in fact been carrying out the activities
in the public interest in accordance with its charter or instrument of incorporation, uninterruptedly for a
period of no less than one year prio r to the year to which the private individual’s st atement of instruction
pertains;
f) in respect of the priority public foundations and organizations specified in Subparagraph ac) of
Subsection (1) – have submitted a copy of the contract to the tax authority concluded with a government
agency or local authority at least one year prior to the first day of the year to which the private individual’s
statement of instruction pertains.
g) have filed a statement in confirmation that:
ga) it did not enter into or maintained a collaboration agreement with any political party during a period
of five years prior to the year to which the private individual’s statement of instruction pertains,
gb) it did not nominate a candidate for general parliamentary, European parliamentary and local
government elections jointly with any political party during a period of five years prior to the year to which
the private individual’s statem ent of instruction pertains.
(3) Where a beneficiary listed under Subsection (1) fa ils to comply with the requirement specified in
Paragraph d) of Subsection (2) or fails to meet the deadline specified in Subsection (8) of Section 5, the
state tax authority may – under special circumstances – derogate from this condition. Special circumstances
shall apply, in particular, where any failure to transfer the amount as instructed gravely endangers the
fundamental goals of the beneficiary. In the event of exercising special consideration, the tax authority shall
be empowered to carry out the transfer referred to in Subsection (1) of Section 6 – at the latest within one
year following the year to which the statement of in struction pertains – if the beneficiary satisfies its
outstanding public debt previously.
(4) When a beneficiary is terminated by successi on, the successor shall be entitled to the donations
offered to such beneficiary if it satisfies the requirements set forth in Subsection (2) of Section 4.

(5) Section 4/A.
(1) For the purpose of this Act, ‘beneficiary’ shall mean
a) churches, religious sects or religious communities as described in Act IV of 1990 On the Freedom of
Belief and Religion and the Church (hereinafter referred to as ‘church’) – not including the independent
branches and institutions of churches – if they have been issued a technical code by the state tax authority as
defined in Subsection (2) of this Section;
b) two objectives at most specified by Parliament in the budget act pertaining to the year to which the
private individual’s statement of in struction pertains, with the special appropriation chapter vested with
competence also indicated.
(2) Upon the request of a church claiming to be the beneficiary of the statements of instruction of private
individuals, the state tax authority shall – at the chur ch’s request – issue a technical code if the church
applies for the technical code in the second year fo llowing the operative date of the final resolution on
registration, or subsequently. Upon the tax authority having issued the technical code, the church shall be
recognized as a beneficiary in the y ear that follows the year when the ap plication for the technical code had
been submitted. The resolution for the refusal to issue a technical code may not be appealed. If the state tax
authority refused to issue such technical code, the church shall have fifteen days within which to file for the
judicial review of the state tax authority’s resolutio n. The competent court shall adopt a decision within
fifteen days in non-judicial proceedi ngs, whether to sustain or overrule the resolution, in accordance with
the relevant provisions of Act III of 1952 on the Code of Civil Procedure (hereinafter referred to as
“CPC”). The court’s decision is final.
(3) The state tax authority shall issue a technical nu mber ex officio to the beneficiaries described in
Paragraph b) of Subsection (1).
(4) The director of the state tax authority shall publis h the technical code of the beneficiaries referred to
in Subsection (1) above in the Offi cial Hungarian Gazette (Magyar Közl öny) by the last day of the year
preceding the year when the instruction statement is filed.
Section 5.
(1) Private individuals shall execute the statement(s) of instruction – irrespective of the means used for
the assessment and filing their tax return – and send it to the tax authority by the deadline specified in Point
2. b) of Chapter I. B) of Schedule No. 1 to Act XCII of 2003 on the Rules of Taxation (hereinafter referred to
as “RTA”). The statement(s) of in struction, or the electronic form where applicable, shall include the
beneficiary’s tax number or technical code. Private individuals shall deliver their statement(s) of instruction
to the tax authority in person or by way of the postal service:
a) installed, in the case of self-assessment or if filing a simplified tax return, as part of the tax return
form in a sealed envelope, bearing the private individual’s own tax identification code, deposited in his tax
return package; or
b) via the employer in connection with tax assessment prepared by the employer; or
c) if the tax return or the simplified tax return is filed by way of electronic means as part of the tax return
form, except if the private individual’s tax return is prepared by others, and no authorization was granted to
his representative for sending out the statement of instruction; or
d) by way of derogation from Paragraphs a)-c), in a sealed envelope with the tax identification code
affixed, or by way of electronic m eans on a standard electronic form.
(2) Where a private individual subm its his statement(s) of instruction in accordance with Paragraphs a)-
c) of Subsection (1), and also as defined in Paragraph d) of Subsection (1), the one filed by either of the
methods specified in Paragraphs a)-c) shall be accepted. The taxpayer’s name and home address may also
be indicated on the envelope containing the statement of instruction.
(3) Where Paragraph b) of Subsection (1) applies, the private individual shall execute the statement(s) of
instruction by filling out a standard form prescribed by the state tax authority (or a page of the same size
and content), and send it to the employer in a sealed postal envelope, bearing the private individual’s own

tax identification code and signature fixed across the adhesive section of the envelope, at least ten days
before the deadline specified in Subs ection (1). The employer shall prepare a consignment note, which is to
include the names, tax identification codes and signatures of persons issuing the statements of instruction,
in verification of handing over the envelope. The employer may not gain knowledge of the statements of
instruction, and shall send the envelopes containing such statements of instruction unaltered, together with
the consignment note in a sealed package to the tax au thority by the deadline prescribed in Subsection (1).
(4) The information on the envelope and on the statement of instruction shall be considered confidential
tax information and consequently subject to the rules of data protection, with the exception that the tax
authority:
a) may only allow access to them for inspection by au thorized persons acting in the legal proceedings
mentioned in Subsection (6);
b) shall provide the private individual with information only regarding his own data and the contents of
his own statement of instruction;
c) shall provide information to the beneficiary only on the funds transferred to it.
(5) Upon opening the envelope – not including the stat ements of instruction received in electronic format
-, the tax authorities shall:
a) mark the envelope and the statement or statements of instruction contained therein, or
b) mark the part of the statement of instruction that contains the taxpayer’s name and tax identification
code, or tax number where applicable, or the perforat ed section where the beneficiaries are indicated with
identification numbers, and shall affix matching codes upon them at the time when opening the envelope
containing the tax return or the stat ement requesting a simplified tax retu rn. The tax authority shall process,
inspect and store these documents separately from each other in such a manner that no person(s) shall
simultaneously have access to both documents. The tax au thority’s information system shall detach the data
contained in the statements of instruction filed in el ectronic format from the tax return, and shall assign an
identification number to such data. When processing electronic statements of instruction, the tax authority
shall handle the data of the private individual and the beneficiaries separately.
(6) The tax authority may only allow for the separated documents to be linked to each other on the basis
of the identification number only:
a) in the event of legal proceedings regarding the fulfillm ent of the statements of instruction, for the use
of authorized persons acting in the course of such proceedings up until such time as the proceedings are
concluded by a final legal judgment; or
b) in connection with payment of the excess amount of tax referred to in Subsection (1) of Section 2, in
the proceedings defined in Subsection (3) of Section 2, in the last sentence of Subsection (5) of Section 6
and in Subsection (5) of Section 7.
(7) The obligation of the tax authorities to store the data, as noted in Subsection (5), shall remain in
effect until the end of the fifth year following the year in which the statement of instruction was filed in the
case of Subsection (1) of Section 6, or following the year to which the private individual’s statement of
instruction pertains, plus one, in the cases specified in Subsection (2) of Section 2 and Subsection (6) of
Section 6. The aforesaid obligation of safeguarding applies beyond such date until all legal proceedings, as
described in Subsection (6), which have been opened up to the above date, have been concluded by final
judgment. After this point in time the envelopes and statements of instruction, the data contained on
standard electronic forms, and the details contained in the database relating to the statement of instruction
shall be destroyed.
(8) Relying on the statements of instruction of private individuals which are deemed valid for reasons
attributed to the said private individuals, the ta x authority shall notify the beneficiaries listed under
Subsection (1) of Section 4 by the first day of Septembe r every year to comply with the requirements set
out in Subsection (2) of Section 4 within thirty days. The notice shall be sent to the mailing address of the
beneficiaries, or failing this to their registered offi ce. If the beneficiary fails to meet this deadline, the
provisions of the Act on the General Rules of Administrative Proceedings pertaining to applications for
continuation shall apply.
Section 5/A.

Section 6.
(1) The state tax authority shall transfer the amounts specified in Section 3 to the beneficiaries defined
under Subsection (1) of Section 4 within thirty days of the day on which the statements prescribed under
Subsection (2) of Section 4 are presented, but not late r than 15 December of the year to which the private
individual’s statement of instruction pertains, in due observation of the provisions of Subsection (8) of
Section 5 and Subsection (7) of this Section.
(2)
(3) The beneficiary described in Subsection (1) of S ection 4 shall be required to send the information
(including the sums allocated for the designated objective and the operating expenses) relating to the
appropriation of the donation, as sp ecified, transferred on the basis of this Act – indicating the fact and
objective of the donation that might be placed in reserve, the period which may not exceed three years and
the amount -, before 31 October of the year following the calendar year when the transfer was made. If the
tax authority finds during the inspection conducted under Subsection (7) of Section 7 that any beneficiary
described under Subsection (1) of Section 4 failed to comply with this obligation or published any
information in its notice that is untrue, the tax authority shall adopt a resolution to exclude this beneficiary
from the list of beneficiaries authorized for the following year. The state tax authority shall be required to
abide by the rules set out in Subsection (7) of Section 5 on safeguarding. The state tax authority shall make
available its database containing notices and exclusio n resolutions on an electronic data storage device to
the minister in charge of relations with social and other non-governmental organizations. The minister shall
publish these notices free of charge before 30 November of the year following the year when the transfer
was made on the website designated to non-governmen tal organizations. The notices may not be removed
from the website for a period of one year, until the publication of next year’s notices. The organizations
that have an internet platform, whether their own or one supplied under contract, the contents of which falls
within their responsibility (h ereinafter referred to as “official webs ite”), shall publish their notices on this
platform as well until 15 December of the year followi ng the year when the transfer was made, and may not
remove them for a period of at least one year.
(4) The state tax authority shall inform – on the basis of statements of instruction filed in accordance with
the provisions of Subsection (5) of Section 1 – the minister in charge of taxation, the minister in charge for
the coordination of contact with religious organizations and the minister in charge of relations with social
and other non-governmental organizations by 31 August of the year to which the statements of instruction
pertain, concerning:
a) the beneficiaries listed under Subsection (1) of Section 4 (broken down by category), the total amount
of donations they have received according to category and the number of taxpayers whose donations were
approved and accepted, and
b) the beneficiaries listed under Subsection (1) of Section 4/A, the amount of donations they have
received and the number of donatio ns offered to each beneficiary.
The state tax authority shall publish the above-specified information by 15 September in two or more
national daily newspapers and on its official website.
(5) The state tax authority shall publish a list on its official website concerning:
a) the beneficiaries listed under Subsection (1) of Section 4 broken down by category, the total amount
of donations they have received and the number of ta xpayers whose donations were approved and accepted,
and
b) the names, tax numbers and registered offices of the beneficiaries listed under Subsection (1) of
Section 4, the total amount of donations made to each beneficiary during the year and the number of
taxpayers whose donations were approved and accepted,
c) the names, technical codes and registered offices of the beneficiaries listed under Subsection (1) of
Section 4/A, the total amount of donations made to each beneficiary during the year and the number of
taxpayers whose donations were approved and accepted.
The beneficiaries that in fact recei ved their donations upon satisfying a ll pertaining legal provisions shall
remain on the state tax authority’s website until 31 December of the year to which it pertains. The state tax
authority shall provide access to the database containing the in formation referred to in Paragraph b) to the
minister in charge of relations with social and other non-governmental organizations for display on the

internet platform he operates, and for the purpose of processing and archiving. At the beneficiaries’ request,
the state tax authority shall supply information to them free of charge, concerning the number of statements
of instructions made out on their behalf, valid and disqualified, and the ones still pending at the time of data
disclosure, broken down according to regions, and the reasons listed under Paragraphs a)-d) of Subsection
(1) of Section 7 for disqualification, showing the percentage of disqualified instructions.
(6) The ministry directed by the minister in charge for the coordination of contact with religious
organizations shall transfer the donations to the beneficiaries under Paragraph a) of Subsection (1) of
Section 4/A in the amount calculate d by the state tax authority effective on 31 December of the year to
which they pertain, together with any additional amount s specified on the auxiliary list pertaining to the
previous periods defined under Subsection (8), by 31 January following the year to which the private
individual’s statement of instruction pertains.
(7) If a tax return, simplified tax return or tax asse ssment by the employer is found deficient for data
processing necessary for the transfer , the transfer shall be carried out:
a) when rendered possible based on the correction of the said documents within one year of the last day
of the year in which the statement of instruction was filed;
b) or if the tax authority has granted authorization for deferred payment or payment by monthly
installments, and the transfer can be lawfully carried out in accordance with Subsection (1) of Section 1.
(8) The state tax authority shall publish the names of the beneficiaries – included under Subsection (1) of
Section 4/A – to whom any donations were awarded following litigation, or under Subsection (7) of this
Section and Subsection (1) of Section 2 as payable during the subsequent period – in an auxiliary list
disclosed in its Memorandum of 31 August of the subject year.
(9) The sums donated to the special chapter defined under Paragraph b) of Subsection (1) of Section 4/A
shall be contained in the appropriat e budget chapter – and specified in the annual budget act – for the year
following the year in question, that is to be approp riated by way of tender procedures. The special chapter
affected shall give account of the appropriation in th e preamble to the relevant chapter in the act on the
implementation of the annual budget act, indicating the organizations and persons and the sums they were
provided in the tender. This report shall be displayed on the relevant website in accordance with Subsection
(3), for the period defined therein.
Section 7.
(1) The instruction of the statement shall be invalid if any of the following is substantiated:
a) either of the conditions prescribed in Section 1 are not satisfied;
b) if two statements of instruction are submitted, both be neficiaries are included in the list of Section 4 or
Section 4/A;
c) no tax number or technical number is indicated in th e statement of instruction, or such number is
incorrect or illegible, unless the beneficiaries lis ted in Section 4/A may be identified without it;
d) the statement of instruction or the envelope, or the forwarding of the envelope is not in compliance
with the provisions described in Subsections (1)-(3) of Section 5;
e) the beneficiary who is so obliged fails to provide proof of fulfilling the conditions specified in
Subsection (2) of Section 4 during the proceedings described in Subsec tion (8) of Section 5 or fails to
discharge its statement and information disclosure obligations described in Subsections (2) and (3) of
Section 4.
f)
(2) The tax authority shall notify the donating private individual by 30 November of the year to which
the private individual’s statement of instruction pertains, if it declares his donation disqualified for reasons
attributed to the private individual before 15 November. In the event that the tax authority fails to notify the
donating private individual by 30 November of the year to which the private individual’s statement of
instruction pertains with regards to his donation being disqualified for reasons attributed to him, and the
beneficiary named by said private individual appears in the list on the state tax authority’s official website
as specified in Subsection (5) of Section 6, such instruction shall be considered to have been fulfilled.

(3) The provisions set out in Subsection (2) shall not apply where the validity of the private individual’s
statement of instruction – for reasons attributed to the private individual – cannot be determined (in
particular the amount of tax payable) by 15 November. In this case the tax authority shall notify the private
individual in question by 30 November. As regards validity, the tax authority shall adopt a decision before
the last day of the year following the year when the statement of instruction was made. If the private
individual in question cannot be identified or the tax amount cannot be determined by the last day of the
year following the year when the statement of instruction was made, the tax authority shall adopt a decision
declaring the statement of instruction disqualified, and it shall not be carried out. The private individual
affected, if he/she can be identified, shall be notifie d of the decision. The notification shall be effected
within thirty days of the day of the decision, not later than before the last day of the year following the year
when the statement of instruction wa s made. The transfer may be carried out if the statement is declared
valid by the tax authority, or by the body of the second instance, where applicable, under the relevant
circumstances of the private indivi dual and the beneficiary, both.
(4) If the instruction in the statement is considered in valid in accordance with this Act, due to any reason
attributed to the beneficiary, the tax authority shall notify the taxpayer filing the statement of instruction,
without indicating the reason thereof. The time limit fo r such notification shall be thirty days after the
beneficiary is rejected, after 30 November of the y ear to which the statement of instruction pertains.
(5) The tax authority shall notify taxpayers filing their tax returns by way of electronic means through
the central electronic services netw ork, electronically, upon carrying out the instruction contained in the
taxpayer’s statement of instruction. The aforesaid notice shall be dispatch ed within fifteen days following
the day of transfer effected under Subsection (1) of Section 6 and Subsection (6) of Section 6. Furthermore,
taxpayers are also notified by way of electronic mail concerning the notification transmitted through the
central electronic services network.
(6) Where taxpayers filing their tax returns by ways other than by electronic means are also requesting
the notification transmitted electronically according to Subsection (5) above, they shall convey such request
using the form made available on the tax authority’s official website for this particular purpose by 30
September of the year to which their statements of instruction pertain. Based on this request the tax
authority shall provide the notice specified in Subsection (5) to the taxpayers filing such request, provided
that the taxpayer has a customer po rt of entry that is required for access to the central electronic services
network.
(7) Funds transferred to the beneficiaries described in Section 4 shall be considered budgetary aid of
such a nature that the tax authority, applying the relevant regulations of the RTA is entitled to check the
appropriate use of such funds for public purpose activ ities, including the way it is claimed, in accordance
with this Act. If the tax authority finds – taking into consideration, if neces sary, the opinion of the
competent body vested with jurisdiction in specific other legislation – that such funds were claimed
unlawfully or they were not used for public purposes, the tax authority shall adopt a resolution ordering
repayment of the funds within the statute of limitations established in the RTA.
(8) The appropriation of budgetary subsidies shall be considered relevant from the perspective of public
purpose activities if used by the beneficiary:
a) referred to in Subparagraphs aa)-ac) of Subsection (1) of Section 4 for the public purpose activities
defined in the charter or instrument of incorporation as its principle function in accordance with Paragraph
c) of Section 26 of the NPO,
b) referred to in Paragraphs b)-g) of Subsection (1) of Section 4 for the public purpose, public function
and public benefit activities defined in the instrument of incorporation and in the relevant specific other
legislation as its principle function.
(9) The total amount of the expenses relating to the beneficiary’s maintenance and operation – in
connection with any donation that mi ght be placed in reserve under Subsection (3) of Section 6 including
the expenses of this type incurred during the years af ter the reserve facility – may not exceed thirty per cent
of the budgetary subsidies provided for a year. Operating costs shall, in particular, mean the following:
a) wage costs under Section 79 of Act C of 2000 on Accounting,
b) costs of offices and places of administration, except if used also as the private residence of either
founder, executive officer or employee, or the close relative of these (including maintenance costs, such as
rental and lease charges, utility charges payable by the beneficiary),

c) postal expenses, phone and internet acce ss basic charges (communication costs).
(10) For budgetary agencies, operating costs shall cover personal disbursements and material expenses.
(11) In the event that a beneficiary fails to establis h fulfillment of the conditions stipulated under Section
4 in accordance with the procedure ou tlined in Subsection (8) of Section 5, or fails to discharge its
statement and information disclosure obligations descri bed in Subsection (2) of Section 4, the tax authority
shall adopt a non-appealable resolu tion to this effect, which, upon request by the beneficiary, may be
altered by the court in which registration of the benefi ciary took place, or, in the event that no such court
exists, by the court with jurisdiction according to the beneficiary’s address, in nonjudicial proceedings
within fifteen days, if it is found that the conditions are fulfilled. These proceedings shall be governed by
the relevant provisions of the CPC.
(12) In respect of matters related to the statement of instruction, the provisions of the RTA shall be
applied, with due consideration of the exceptions provided for in this Act.
Section 8.
(1) This Act shall enter into force on the fifth day following its promulgation, in such a manner that a
statement of instruction may be made for the first time with regard to the income tax for 1996, as
established in Section 1.
(2) The minister in charge of taxation is hereby author ized to decree, jointly with the minister in charge
of relations with social and other non-governmental organizations, the formal and content requirements for
the notices referred to in Subsection (3) of Section 6.