All companies registered in Budapest have obligations towards BKIK, the Budapest Chamber of Commerce: every year, they must provide the Chamber of Commerce with information about their activity and pay a small contribution. However, joining BKIK is optional, meaning that the yearly contribution is not a membership fee. So what is the difference between the contribution and the membership fee? And what can you expect for your money?
Yearly contributions are mandatory
If your enterprise is registered in Budapest, you need to pay HUF 5,000 (approximately EUR 14) to BKIK in yearly contributions. In return, the Chamber of Commerce offers you the following services:
- Consultancy in matters of economy, finances, taxation and taking loans
- Partner search
- Tender monitoring
The yearly contribution is similar to a tax, since you must pay it even if you never use BKIK’s services. What is more, overdue Chamber of Commerce contributions are public liabilities, meaning that the tax authority (NAV) can start a recovery procedure against any business that fails to meet the deadline.
New companies must pay the contribution within five days of their incorporation. From the second year on, the deadline is 31 March, although it was postponed in 2020 and 2021 due to the negative effect of the pandemic on the economy. The sum is paid for a calendar year, meaning that a business formed towards the end of the year needs to pay the contribution twice in quick succession.
BKIK membership is optional
By contrast, Chamber of Commerce membership is optional and involves paying a yearly membership fee, not to be confused with the yearly contribution. However, BKIK members can deduct their contribution from their membership fee. The membership fee is calculated in the following manner:
- Freelancers paying flat-rate tax or the Itemized Tax Liability of Small Taxpayers (KATA) need to pay a membership fee equal to 0.06% of 80% of their yearly revenue.
- All other enterprises must pay a membership fee equal to 0.06% of their yearly revenue minus the cost of the goods, services, and materials they purchased, as well as the money they spent on contractors, research, and development.
The minimum BKIK membership fee is yearly HUF 15,000 (approximately EUR 43), while the maximum is yearly HUF 1,100,000 (approximately EUR 3,140). Enterprises joining the Chamber of Commerce after 30 June only need to pay half of the membership fee for the year. If you do not pay your membership fee, your BKIK membership will be terminated and you will be banned from re-joining for a year.
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