From 1 January 2020 the benefit regarding authorities shall warn SMEs instead of fine will be repelled.
Act XXIV of 2004 on Small and Medium Enterprises and Supporting their Development (SME Act) provides for the concept of small and medium-sized enterprises and their development. When the law was passed, Parliament wanted to support these businesses on several levels, for example, in connection with subsidies for economic purposes, the establishment of the Enterprise Development Council, and a privileged approach in official controls during administrative procedures.
In the event of an administrative misdemeanour detected for the first time in the course of administrative controls, in accordance with the rules in force until 31 December 2019, the administrative authorities shall apply a warning instead of imposing a fine. The law does not give state bodies the discretion, they cannot impose fines in case of first violation, they are obliged to apply the institution of warning, save for certain material breaches of law causing a threat to life, health or the environment that are specified in the Act.
This relief will no longer be available from the first day of January, so authorities may impose fines on first-timers even if they are qualified as SMEs. Other provisions of the SME Act remain unchanged.