Special tax on credit institutions and financial enterprises
The basis of assessment for the special tax, is the net turnover of sales as defined in Act C of 1990 on Local Taxes, based on the annual accounts for the tax year prior to the current tax year.
Rate of the special tax:
- 10% in 2022,
- 10% in 2022, 10% in 2023, 8% in 2023.
The tax liability is payable in two equal instalments by 10 October and 10 December 2022 for the tax year 2022 and in two equal instalments by 10 October and 10 December 2023 for the tax year 2023.
Special tax on petroleum products
The special tax for a producer of petroleum products shall be based on the difference between the world market price of crude oil originating in the Russian Federation, as determined by law, and the quantity of crude oil originating in the Russian Federation, measured in barrels, purchased during the month in question.
The tax rate is 25%.
As a general rule, the producer of petroleum products shall establish, declare and pay the special tax liability on a monthly basis by the 20th day of the month following the month in question, using the form prescribed by the State Tax Service.
The producers of petroleum products shall establish, declare and pay the special levy due for each month of the period from 1 January 2022 to 1 July 2022 by 20 September 2022.
Specific tax for producers of renewable energy products
With a few exceptions, producers will be subject to a specific tax on the difference between the revenue from the delivery of energy fed into the grid and the feed-in price or the subsidised price, and producers eligible for the feed-in tariff and the Metre Regulation, and producers eligible for green premium support.
- In the case of a generator eligible for mandatory take-over subject to the KÁT Regulation and not having a balance group membership or premium support contract with the recipient, the revenue after the quantity of electricity fed into the electricity grid by the generator eligible for mandatory take-over in the month concerned and the amount of electricity fed into the electricity grid in the month concerned as determined by the Hungarian Energy and Public Utility Regulatory Office (hereinafter referred to as the "Office"): Office), less the positive sum of the compulsory purchase price or the subsidised price applicable for the year in question;
- in the case of a generator subject to the METÁR Regulation which is eligible for mandatory off-take and which does not have a balancing group membership or premium support contract with the recipient, the positive amount of the turnover after the quantity of electricity fed into the electricity network during the reference month by the eligible generator minus the quantity of electricity fed into the electricity network during the reference month multiplied by the applicable mandatory off-take or subsidised price for the reference year as determined by the Office;
- in the case of a generator eligible for green premium support under the METÁR Regulation which does not have a contract under the host's business rules for the granting of green premium support, the positive amount of the sales price fixed in the electricity trading contract concluded by the generator eligible for green premium support, minus the subsidised price applicable for the reference year, multiplied by the quantity of electricity injected into the electricity network by the generator during the reference month.
The tax rate is 65%. The payment schedule is similar to that for producers of petroleum products.
Contribution from airlines
The rate of the contribution payable by an entity providing groundhandling services within the meaning of Act XCVII of 1995 on air transport varies according to the destination (3.900,-Ft, 9.750,-Ft).
The contribution rate is:
a) if the passenger's final destination is in the territory of the Republic of Albania, the Principality of Andorra, Bosnia and Herzegovina, the Republic of Bosnia and Herzegovina, the Republic of Northern Macedonia, the Republic of Iceland, the Republic of Kosovo, the Principality of Liechtenstein, the Republic of Moldova, the Principality of Monaco, Montenegro, the United Kingdom of Great Britain and Northern Ireland, the Kingdom of Norway, the Republic of San Marino, the Swiss Confederation, the Republic of Serbia, Ukraine and the European Union, HUF 3,900 per passenger,
b) HUF 9750 per passenger for a final destination in countries other than those specified in point (a).
The person liable to pay the contribution shall submit the return by the 20th day of the month following the month to which the contribution relates, using the electronic form provided for this purpose by the State Tax and Customs Administration.
The special levy shall be assessed and declared in accordance with the self-assessment rules for the number of departing passengers whose departure date falls within the declaration period referred to in the preceding paragraph.
Vehicle tax - company car tax
The rate of company car tax varies as follows:
Exemption from the rules of Act LXVII of 2008 on making district heating more competitive
The tax, known in common language as the Robin Hood tax, will now also affect manufacturers in the production sector.
A manufacturer of bioethanol, a manufacturer of starch and starch products and a manufacturer of sunflower oil are considered to be manufacturing industries.
The taxable base is, like (but not the same as) the corporate tax, profit before tax plus or minus tax base adjustments. The tax rate is 31 percent of the positive tax base.
The advance tax payable by the manufacturing manufacturer for the tax year 2022
- shall determine the tax due for the tax year 2022 on the basis of the tax expected to be payable for the tax year 2022 by self-assessment and shall declare it by 20 September 2022 and pay it in equal monthly instalments by the 20th day of each month, starting on 20 September 2022.
- the advance payment of tax for the tax year 2023 shall be determined by the manufacturing manufacturer on the basis of the tax expected to be payable for the tax year 2023 by self-assessment, declared by 20 January 2023 and paid in equal monthly instalments by the 20th day of each month.
The main changes to simplified employment are summarised in the table below.
Exemption from the rules of Act CIII of 2011 on the Public Health Product Tax
From 1 July 2022, the obligation to pay NET VAT will also apply to beer and other pre-packaged products, energy drinks (etc.) (Annex 2 of the Extra Profit Tax Regulation).
The basis for the additional tax for telecommunications companies:
- In the tax year including 1 July 2022 - in the case of a taxable person starting its taxable activity after 1 July 2022, in the tax year starting after 1 July 2022 - the taxable amount for that tax year,
- for the tax year beginning in 2023, the net turnover, as defined in local law, from the activity in the tax year beginning in 2023 (subject to any pro rata liability).
The tax rate is graduated:
- 0 percent for the part of the tax base not exceeding HUF 1 billion,
- 1 per cent on the part of the taxable amount above HUF 1 billion but not exceeding HUF 50 billion,
- 1 percent for the part above HUF 50 billion but not exceeding HUF 100 billion, and 3 percent for the part above HUF 50 billion but not exceeding HUF 100 billion,
- 7 percent for the part exceeding HUF 100 billion.
Payment of tax:
- Until November 30, 2022, for the tax year including July 1, 2022, at the rate of tax determined on the basis of the net turnover achieved in the tax year beginning in 2021, at the rate of tax as set out above, subject to any pro rata liability in respect of a tax year beginning after July 1, 2022, of less than 12 months;
- until the last day of the fifth month of the tax year beginning in 2023, an amount equal to the additional tax for the tax year beginning in 2023 as established for the year 2022
shall be assessed, paid and declared.
For the assessment of the additional tax of taxpayers who are related to each other, the law provides for an aggregation and apportionment rule, provided that the related business relationship was established by a division or separation after 1 June 2022 or the taxpayer transfers (makes available) the assets necessary for the performance of the activity to its related business after 1 June 2022.
However, these special rules do not apply if the taxpayer can prove that the transactions listed above were carried out solely for economic purposes.
Financial transaction tax
The scope of the FTT Act covers, as a general rule, payment service providers established or having a branch in Hungary, financial institutions other than payment service providers providing credit and loans, credit institutions authorised to carry out currency exchange activities and prime brokers authorised to act as money changers
As a result of the extra-profit regulation, the scope of the FTT will be extended to persons providing cross-border services in Hungary, as regards payment services, credit and money lending, money exchange and money exchange intermediation.
Enterprises, commodity exchange service providers, credit institutions, financial undertakings and the purchase of ISIN-identified financial instruments issued by KELER Central Clearing House and Depository Ltd. for the benefit of a client account or own account will also be subject to transaction tax.
The transaction fee is based on the value (purchase price) of the financial instrument credited to the client account (securities account).
The amount of the transaction tax is 0.3 percent of the base of the FTT, up to a maximum of HUF 10,000 per payment transaction.
Insurers will pay an additional insurance tax based on the premium: higher in 2022, ranging from 2 to 14 percent depending on the size of the premium and the service provided. In 2023, the same will be 1 to 7 percent.
Retail sales tax
Retailers must pay a retail sales tax equal to 80 percent of the amount calculated for the tax year, 365 days.
- For revenues above HUF 100 billion, the current deduction of 2.7 percent rises to 4.1 percent.
- For the HUF 30-100 billion band, the tax rate is now 1 percent, compared to 0.4 percent previously.
- The current 0.1 per cent tax burden will remain in the range of EUR 500 million to EUR 30 billion, and zero per cent below that.
Excise duty rates will increase on several products.
- electricity used to charge e-cars will be subject to excise duty at HUF 358.50 per megawatt hour.
- For example, the excise duty on beer produced in a brewery will be HUF 900 per hectolitre per degree of actual alcoholic strength. Large breweries will pay double this amount, HUF 1 800.
- The excise duty will be set at HUF 565 840 per hectolitre of pure alcohol.
In addition to the above, the following areas are also affected by the change, but are not covered in detail in this summary:
- Mining Act
- Decree on the determination of the unit value of mineral resources and geothermal energy and the method of calculating the value
- The Act on the General Rules for the Safe and Economical Supply of Medicinal Products and Medical Devices and the Distribution of Medicinal Products
If you have any questions about the above summary or if you have any tax queries, please contact us by filling in the form below.