On 4 June 2022, the Government Decree on extra profit taxes was published. In addition to the sectoral special taxes, the decree contains detailed rules on the increase of the company car tax, the simplified employment tax, the public health product tax and the excise duty.
The provisions will enter into force on 1 July 2022, except for the rules on mining royalties and on minerals and geothermal energy, which will enter into force on 1 August 2022. The Government expects that the extra profit taxes generate approximately HUF 900 billion in tax revenue per year.
The main provisions of the Government Decree are summarized below indicating the expected annual value of the extra tax(es) for each sector.
|
Impacted taxpayers |
Tax base |
Tax / contribution rate |
Planned budget revenue per year |
| Credit institution and financial enterprise | net turnover as defined in the Act on Local Taxes, based on the annual accounts for the tax year preceding the given tax year |
10% in 2022 8% in 2023 |
HUF 300 billion
|
| Investment company and credit institution | the value (purchase price) of the financial instrument credited to the client's account (securities account) as defined by the Government Decree |
0.3%, but not more than HUF 10,000 per purchase |
|
| Entities providing payment services, credit and money lending, currency exchange, currency exchange intermediation activities in Hungary as cross-border services | become subject to a financial transaction tax in accordance with the provisions of the relevant legislation | ||
| Producer of petroleum products | the price difference of crude oil deriving from the Russian Federation determined in accordance with the Government Decree and the barrel volume of crude oil from the Russian Federation purchased during the month in question | 25% |
HUF 300 billion
|
| A producer subject to the compulsory purchase scheme under the KÁT Regulation, a producer subject to the compulsory purchase scheme under METÁR and a producer eligible for green premium aid if its contract expires in the tax year 2022 or 2023 or if it starts its commercial operation in the tax year 2022 or 2023 but does not conclude the contract necessary to benefit from the balance sheet membership, premium support or green premium aid under the KÁT Regulation | Producer subject to mandatory acquisition under the KÁT and METÁR Regulations: the positive sum of the sales revenue after the amount of electricity injected into the electricity grid in the reference month minus the amount of electricity injected into the electricity grid in the reference month multiplied by the mandatory acquisition or subsidized price applicable for the reference year, as determined by the Hungarian Energy and Public Utility Regulatory Office;
Producer eligible for green premium type support under METÁR: the positive amount of the sales price set in the electricity trading contract minus the subsidized price for the reference year multiplied by the amount of electricity injected into the electricity network by the producer during the reference month |
65% in 2022 and 2023 | |
| Producer of the processing industry (bioethanol, starch and starch products, sunflower oil) | Tax base under the Distance Heating Act | 31% in 2022 and 2023 | |
| Person liable to pay mining duties | the value accruing on the quantity of mineral extracted under the official authorization:
- 48% (for oil and gas extracted from hydrocarbon fields brought into production on the basis of a technical production plan before 1 January 2008) - 42% (for natural gas extracted from hydrocarbon fields in production and sold at free market before 1 January 1998) - 36% (for crude oil and natural gas extracted from hydrocarbon fields put into production on a trial basis and from hydrocarbon fields brought into production on the basis of a technical production plan after 1 January 2008)
|
||
| Ground handling entity (for air passenger transport activity) | the number of domestic departing passengers, excluding transit passengers, of an aircraft served by a ground handling entity in the course of an air passenger transport operation | depending on final destination 3,900 / 9,750 Ft per passenger |
HUF 30 billion |
| The authorized licensee (or in some cases the distributor) of a medicinal product and the applicant for social security funding for a nutritional product | for all publicly financed medicines and infant formulae distributed in pharmacies (with the exception of certain products), the part of the social security contribution based on the monthly prescription data for the month in question, proportional to the producer price or import purchase price (producer price/consumer price) | in 2022 and 2023:
- 20% for medicines with a producer price not exceeding HUF 10,000, - 28% for medicines with a producer price exceeding HUF 10,000 |
HUF 20 billion |
| Subject to company car tax | between 1 July 2022 and 31 December 2022 according to the table below (almost double the current rate) |
HUF 100 billion |
|
| The employer in the case of simplified employment scheme | linked to the minimum wage:
- 0.5% for seasonal agricultural and tourist work - 1% for ad hoc work - 3% for film industry work |
||
| Person subject to the public health product tax | an extension of the range of taxable products (e.g. dainties, pre-packaged sweet, savory pasta) and an increase in tax rates - detailed list in the Government Decree | ||
| Person subject to excise duty | tax rates on certain energy, alcohol and tobacco products increase - detailed list in the Government Decree | ||
| Providers of electronic communications services | net turnover for the tax year in question, as defined in the Act on Local Taxes | adóalap
- 0% on the part of the tax base not exceeding HUF 1 billion, - 1% on the part of the tax base exceeding HUF 1 billion but less than HUF 50 billion, - 3% on the part of the tax base exceeding HUF 50 billion but less than HUF 100 billion, - 7% on the part of the tax base exceeding HUF 100 billion |
HUF 40 billion |
| Insurance company | the amount of premiums from various insurance services | progressive tax rates between 1 July 2022 and 31 December 2023, depending on the amount of the tax base and the specific activity (the tax in 2023 is half of the amount for 2022) |
HUF 50 billion |
| Person subject to retail sales tax | unchanged (retail tax according to the law) | for the tax year which includes 1 July 2022: in addition to the retail sales tax otherwise payable, a supplementary tax is payable equal to 80% of the retail sales tax otherwise payable
in the tax year commencing in 2023: the progressive tax rates will increase (e.g. 4.1% instead of 2.7% for that part of the tax base which exceeds HUF 100 billion) |
HUF 60 billion |
* The company car tax rate:
|
A significant increase in the amount of |
B | C | D |
|
Power (KW) |
for environment protection class from "0" to "4" |
for environment protection class from "6" to "10" |
for environment protection class "5" and for "14-15" |
|
0–50 |
HUF 30,500 | HUF 16,000 | HUF 14,000 |
|
51–90 |
HUF 41,000 | HUF 20,000 |
HUF 16,000 |
| 91–120 | HUF 61,000 | HUF 41,000 |
HUF 20,000 |
| Over 120 | HUF 81,000 | HUF 61,000 |
HUF 41,000 |