Hungary: New "extra profit" surtaxes, financial transaction taxes, and other miscellaneous tax increases
Increased rates of certain taxes in 2022 and 2023
Financial transaction taxes, other miscellaneous tax increases
Government Decree 197/2022. (VI. 4.) on "extra profit" surtaxes was published in the Hungarian official gazette. The decree provides for the following new surtaxes to maintain a balanced budget:
- Surtax on credit institutions and financial enterprises on net turnover (10% in 2022 and 8% in 2023)
- Surtax on producers of petroleum products on the price difference between a specific world market price and the purchase price of crude oil originating from Russia multiplied by the quantity of barrels of crude oil purchased in Russia in the actual month (25% in 2022 and 2023)
- Surtax on certain renewable power plants on certain profits (65% in 2022 and 2023)
In addition, a 0.3% financial transaction tax (capped at HUF 10,000 per purchase transaction) will apply as of 1 July 2022 to:
- The purchase by investment companies and credit institutions of financial instruments with a certain International Securities Identification Number (ISIN) code
- The provision of payment services, credit and loan provision, currency exchange and mediated currency exchange services provided by service providers as a cross-border service in Hungary
A new contribution will also be charged as of 1 July 2022 on air transportation activities, payable by the ground handling company per the number of departing passengers (excluding passengers in transit).
The rates of the following taxes will also be increased in 2022 and 2023:
- The monthly amount of company car tax, determined on the basis of the car's power in kilowatts and its environmental class designation, will almost double between 1 July 2022 and 31 December 2022.
- The currently applicable 20% pharmaceutical tax rate for certain medicinal products and dietary supplements will increase to 28% for products with producer prices above HUF 10,000.
Finally, the rates of the following taxes will be increased, and in some cases, the scope of applicability expanded:
- "Robin Hood" tax
- Public health product tax
- Telecom tax
- Insurance tax
- Excise duties
- Retail tax
- Mining tax
Read a June 2022 report prepared by the KPMG member firm in Hungary
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.