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08 June 2022

The Government of Hungary has established funds for the protection of utility rates and national defence. Among other things, it wishes to finance them from so-called ‘special taxes on extra profit’, the introduction of which it expects to generate revenues of about HUF 800 billion per year. The special taxes affect the tax years of 2022 and 2023. The first specifics were presented at the government information briefing on 26 May, and the government decree setting out the details was published on 4 June.

The sectors covered by the new tax measures and the main rules for the individual special taxes are as follows:

I. Retailers

In 2022, taxpayers engaged in taxable activities under the Retail Tax Act are required to pay a one-off supplementary tax equal to 80 per cent of the retail tax in their tax year starting in 2021 by 30 November 2022.

In the tax year starting in 2023, the rate of the retail tax will increase as follows:

  • 0 per cent for the part of the tax base not exceeding HUF 500 million, which is unchanged;
  • 0.15 per cent instead of 0.1 per cent for the part of the tax base between HUF 500 million and HUF 30 billion;
  • 1 per cent instead of 0.4 per cent for the part of the tax base between HUF 30 and HUF 100 billion;
  • 4.1 per cent instead of 2.7 per cent for the tax base part above HUF 100 billion.

II. Company car tax

The monthly rate of the company car tax will nearly double between 1 July 2022 and 31 December 2022. The tax rates applicable during this period are as follows.

  A B C D
1.  Performance (kW) For environmental class Nos 0 to 4 For environmental class Nos 6 to 10 For environmental class Nos 5, 14 and 15
2. 0-50 HUF 30,500 HUF 16,000 HUF 14,000
3. 51-90 HUF 41,000 HUF 20,000 HUF 16,000
4. 91-120 HUF 61,000 HUF 41,000 HUF 20,000
5. over 120 HUF 81,000 HUF 61,000 HUF 41,000


III. Simplified employment


In the case of employment relationships established from 1 July 2022 under the Simplified Employment Act, the amount of the public dues payable by employers changes:

  • in the case of seasonal agricultural and tourism work, 0.5 per cent of the minimum wage (HUF 1,000) instead of the previous HUF 500;
  • in the case of casual work, 1 per cent of the minimum wage (HUF 2,000) instead of the previous HUF 1,000;
  • in the case of casual extra work in the film industry, 3 per cent of the minimum wage (HUF 6,000) instead of the previous HUF 4,000.

At the same time, the maximum daily wage that can be given to extras in the film industry increases from the previous HUF 18,000 to 12 per cent of the minimum wage, HUF 24,000.

IV. Public health product tax

From 1 July 2022, the rate of the public health product tax payable will also increase. For example, in the case of sugary soft drinks, the tax rate will be HUF 23, contrary to the previous tax rate of HUF 15 per litre. Among others, the tax rates for energy drinks, salty snacks and flavoured will also increase.

V. Credit institutions, financial enterprises and investment companies

Special tax:

The special tax payable by credit institutions and financial enterprises will be 10 per cent of the net sales determined on the basis of their 2021 annual report for 2022 and 8 per cent of the net sales in 2022 for 2023. The special tax will have to be assessed and declared for the first time by 10 October 2022, and 50 per cent of the tax liability in 2022 will also be due by that date.

Transaction fee:

The new measures also extend the obligation to pay transaction fees to securities trading: service providers will incur the obligation to pay this fee on the securities purchased by their customers. The fee is based on the value (purchase price) of the financial instrument credited to the customer account, the rate of which remaining 0.3 per cent, but not more than HUF 10,000. However, no transaction fee is payable on the investment services provided by the Hungarian State Treasury or the institution operating the Postal Clearing Centre.

In addition, the Government raises the upper limit of the transaction fee in force: the rate of the fee was set at a maximum of HUF 10,000 instead of the previous maximum of HUF 6,000.

Pursuant to the amendment, from now on the obligation to pay the financial transaction fee also extends to entities engaged in financial activities as cross-border services in Hungary – thus financial intermediaries, such as Revolut or Transferwise will also be subject to the obligation to pay the fee in the future.

VI. Producers of petroleum products

For these taxpayers, the base of the special tax is the product of the world market price difference of petroleum imported from Russia and the quantity of petroleum procured from Russia in the reference month and measured in barrels, and its rate is 25 per cent. The world market price difference of petroleum has to be calculated as the difference between the arithmetic average of the daily mid-point quotations appearing in Platts Crude Oil Marketwire and the arithmetic average of the purchase prices per barrel of petroleum from Russia.

VII. Energy sector

In the case of power plants generating electricity with an installed capacity exceeding 0.5 MW, the tax base is the difference between the revenue from the transfer of the input energy and the compulsory purchase price or the subsidized price; the tax rate is 65 per cent. However, power plants using solid biomass do not have to pay a special tax.

VIII. Airlines

The decree determines the amount of contribution of air passenger transport companies by the destination and the number of passengers they carry. The contribution has to be paid for passengers on flights departing from Hungary. The amount of the contribution payable is HUF 3,900 per passenger travelling to Albania, Andorra, Bosnia and Herzegovina, Northern Macedonia, Kosovo, Liechenstein, Moldova, Monaco, Montenegro, the United Kingdom, Norway, San Marino, Switzerland, Serbia, Ukraine and EU countries, and HUF 9,750 per passengers travelling to all other destination countries. The special tax will have to apply for the first time to passengers on flights departing from 1 July 2022.

IX. Pharmaceutical distributors

For the years 2022 and 2023, pharmaceutical distributors will be subject to a 20 per cent surcharge for medicines with a producer price not exceeding HUF 10,000, and a 28 per cent surcharge for medicines with a producer price exceeding HUF 10,000.

X. Bioethanol producers

For the years 2022 and 2023, manufacturing producers are also subject to the income tax payable by energy suppliers. Manufacturers of bioethanol, starch and starch products and of sunflower oil are considered to be manufacturing producers.

XI. Telecommunications operators

In addition to the tax liability under the Telecommunications Tax Act, companies providing electronic communications services will have to pay a supplementary telecommunications tax. The base of the supplementary tax is the net sales, and the tax rate is defined in brackets:

  • 0 per cent for the part of the revenue not exceeding HUF 1 billion;
  • 1 per cent of sales between HUF 1 billion and HUF 50 billion;
  • 3 per cent of sales between HUF 50 billion and HUF 100 billion;
  • 7 per cent of the sales part exceeding HUF 100 billion.

In the case of affiliate companies, if the related affiliate relationship was formed by split-up or demerger after 1 June 2022, the turnover of each company will have to be added up and the tax base will have to be distributed among the companies in proportion to sales.

The supplementary tax for the tax year 2022 will have to be paid by 30 November 2022 on the basis of the net sales achieved in the tax year starting in 2021.

XII. Insurers

Supplementary tax on insurance has also been established in brackets. The tax base is on the insurance premium collected. Its rate is higher in 2022, ranging from 2 to 14 per cent, depending on the amount of premium income and the type of insurance service, and from 1 to 7 per cent for 2023. In addition to the existing insurance tax, a supplementary tax will therefore be introduced which is imposed also on life insurance in addition to non-life insurance, but to a lesser extent.

XIII. Other tax changes

Under the government decree, excise tax on tobacco products and alcoholic beverages will increase. The rate of excise tax on electricity, heating oil, LPG and coal will also change. In addition, changes can be expected in relation to mining royalties.