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Hungary: Retail tax measures enacted

Hungary: Retail tax measures enacted

Retail tax legislation has been enacted in Hungary. The legislation, published on 9 June 2020, codifies a retail tax levy that had been implemented by Governmental Decree No. 109/2020.


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There are considerations for taxpayers that have already filed their advance tax returns for tax year 2020. For entities with a tax year that is not the calendar year, if the date of the second instalment occurs after the balance sheet date, the total advance payment will be due in a lump-sum and due by the date of the first instalment (i.e., 20 August). If both the first and second instalments occurred after the balance sheet date, the total amount will be payable by the last day of the tax year.

The annual tax return for the retail tax will be due by the last day of the fifth month following the year-end. In terms of tax year 2020, annual tax is calculated on the basis of the total taxable income realized in the tax year, pro-rated according to the number of days falling between the effective date of the decree (1 May 2020) and the balance sheet date. Advances paid under the decree (for May and June 2020) are to be removed from the annual tax liability declared under the rules of the retail tax law.

Read a June 2020 report prepared by the KPMG member firm in Hungary

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