Extra profit taxes in Hungary – SME INFO HU 2023-2

In order to make up for the budget deficit and to maintain the reduction in utility costs, the Government has imposed special taxes in several areas, which are laid down in Government Decree 197/2022 (4.VI.) on Extra Profit Taxes (hereinafter Government Decree). It should be noted that most of the special taxes, contrary to the name of the Government Decree, do not tax profit, but e.g. sales revenues, number of passengers, and there are also amendments which do not impose a special tax, but modify the current tax rate or extend the scope of taxpayers. Most of the special taxes were implemented for the tax years 2022 and 2023, but there are amendments for which there is no time limit.

The Government Decree has been modified several times since its publishing. In the tables of downloadable newsletter in English (and even in Hungarian) we show the actual rules highlighted with red the latest modifications issued on 31 May 2023 in Government Decree 206/2023 (31.V.). These latest modifications mainly related to the year 2024 overwriting the original goal of ceasing the extra profit taxes at the end of 2023. The changes we consider important are presented in detail, the others are only mentioned.

Download in English:
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Töltse le a hírlevelet magyarul:
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Chapters of newsletter

I Special taxes

a) Special tax on credit institutions and financial enterprises

b) Special tax for the energy sector

c) Special tax from renewable energy sources

d) Contribution from airlines

e) Special tax on distributors of medicinal products

f) Special tax on producers of medicinal products

g) Deviation from the rules of Act LXVII of 2008 on making district-heating more competitive

h) Deviation from the rules of Act LVI of 2012 on Telecommunications Tax

i) Additional insurance tax

j) Retail sales tax

k) Deviation from the rules of Act XLVIII of 1993 on mining

l) Balancing control capacity

II Transaction duties

a) Obligation of investment firms and credit institutions to pay transaction duties

b) Financial transaction duty

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