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Digitalization of tax return system in Hungary

From EPSA - European Public Sector Award

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The National Tax and Customs Administration (hereinafter referred to as: NTCA) implemented a solution in order to decrease the administrative burden of Hungarian citizens that eliminated the complicated process of the personal income taxation. The eSZJA (e-PIT) online platform servicing all individuals was created in which the submission is supported via tax return drafts by the tax administration. The tax administration without any special request compiles the tax return draft for the taxpayers based on the data received from the employers (payers) which may become a valid tax return without any interaction of the taxpayer.


By eliminating the previous tax return forms the system became transparent, by standardization of the deadlines it became simpler at several points. As a result of the developments the tax returns draft is available for everybody, can be seen online.


e-PIT is a system supporting the filing of the PIT returns of individuals and performing the processing of the tax returns. It consists of two parts: generation and processing of the tax return drafts from the source data available for the tax administration; and functions of e-PIT portal. The processing feature includes the applications requesting the delivery of the drafts and the declarations complementing the draft. The new e-PIT calculates the deductions (family benefit, benefit for severe disability) and offers the payable tax reduced by the benefits for the individuals. The draft is available on the e-PIT portal through a platform independent system for the persons having access to governmental portal (‘client gate’) where they can accept, edit, and file the draft even using a smart phone or tablet.


For those individuals without access to client gate’ the tax administration sends the draft by post. The e-PIT includes 40 standard letters, e-mails, SMS thus sending one million notifications. The work of the tax administration employees is supported by several functions for taxpayer services, newly developed query interfaces.


Steps of the compilation of the drafts, their qualification as tax returns:


• continuous processing of the source documents (monthly contributions declarations, different control data disclosures).


• creation of a registry of the data of the controlled source documents in order to calculate the tax benefits.


• receiving SMS messages requesting the postal delivery of the draft from the individuals without access to the client gate as of January each year.


• generation of the tax return drafts through clearly defined algorithms. 2-3 month testing period in several phases prior to the go-live date of the generation processes.


• the tax return drafts are accessible for the taxpayers on e-PIT portal where beside the approval they can also modify the data.


• persons having access to the client gate receive notification when the draft is available.


• postal delivery ex officio or on request of the drafts for the individuals without access to the client gate from mid of March till 30 April.


• if the taxpayer has access to the client gate and has not yet filed the tax return to the tax administration, he/she receives a notification on the expiring deadline.


• in the case of the persons not having filed a separate tax return but having an income, the PIT return draft will become automatically a valid PIT return after the filing deadline expired.


A new application for online filling out the tax return was created through the new e-PIT system beside the tax return drafts which makes the PIT declaration process simple for the taxpayers.


The new system is clear and modern. The NTCA provides assistance for the taxpayers by preparing the PIT declaration for them thus reducing the time necessary for fulfilling of the taxation obligation, the filing takes just few clicks. It is assumed that as an indirect benefit of the service the individuals’ taxation willingness will be significantly increased via such kind of clearly beneficial services in the coming years. Furthermore, it is expected to enhance trust in the tax administration by providing more transparent, taxpayer centric services.


The IT sector lead representatives awarded the system with the prize for best innovation in 2017.


Award info
Award category: new solutions to complex challenges - a public sector citizen-centric, sustainable and fit for the future - european or national level
Award type: submission
Award year: 2019
Project type
Sector: cross-sectoral
Type of activity:
Keywords: taxation; personal income tax;
Short English description: The National Tax and Customs Administration (hereinafter referred to as: NTCA) implemented a solution in order to decrease the administrative burden of Hungarian citizens that eliminated the complicated process of the personal income taxation. The eSZJA (e-PIT) online platform servicing all individuals was created in which the submission is supported via tax return drafts by the tax administration
Further information
Organisation: National Tax and Customs Administration of Hungary
Other applicants:
Homepage: https://eszja.nav.gov.hu/app/login/#login
Level of government: national level
Size of organisation: >100
Number of people involved: >15
Country: Hungary
EU membership: EU member
Language code: en
Start date:
End date:


Digitalization of tax return system in Hungary (47.50271772530234, 19.045733213424682)
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