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

Article Posted date 14 June 2022

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

 

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