Due to the protracted war situation, the government sets up utilities protection and national defense fund, into which a special surtax must be paid by those sectors which, according to its judgment, have gained extra profit in the past period.

Company car tax

A significant change affecting many businesses is that between 1 July 2022 and 31 December 2022 the monthly rate of company car tax will increase.

The following table shows the company car tax based on the previously effective regulation (monthly rate per passenger car, based on the performance of the passenger car expressed in kilowatts and its environmental protection class marking):

*PoDMoV = power of the drive motor of a vehicle
*c.m. = class markings

Based on Section 6 and Annex No. 1 of the adopted government decree, the rate of company car tax will be as follows between 1 July 2022 and 31 December 2022.

*PoDMoV = power of the drive motor of a vehicle
*c.m. = class markings

In addition to the provisions of the government decree, based on the provisions of the law on changes to the 2023 tax law, the increased tax rates will remain in force in 2023.

Surtax on credit institutions

Pursuant to Section 1 of the aforementioned government decree, credit institutions and financial enterprises are obliged to determine, declare and pay surtax for the tax years 2022 and 2023 through self-assessment.

Based on Act LIX of 2016 under the earlier law the tax base was the adjusted total assets calculated from the data of the financial statement of the second tax year preceding the tax year prepared in accordance with the government decree on the specificities of the annual financial statement preparation and bookkeeping obligations of credit institutions and financial enterprises (in the case of a credit institution that does not act in accordance with IFRS.) According to the previous regulations, the basis of tax for a financial company is the combined amount of the interest result, the fee and commission result calculated correctly from the data of the financial statement of the second tax year preceding the tax year prepared in accordance with the previous government decree, or for a financial company that prepares its financial statement in accordance with IFRS, the corresponding amount calculated as per IFRS. Based on the old rules, the tax rate for credit institutions is 0.15 percent for the part of the tax base not exceeding HUF 50 billion, 0.2 percent for the amount above this, and 6.5 percent for financial enterprises.

Pursuant to the new rules of the government decree, the basis of the surtax is uniformly (for both credit institutions and financial enterprises) the net sales revenue determined on the basis of the financial statement of the tax year preceding the tax year according to the Act on Local Taxes. The surtax rate will be 10 percent in 2022 and 8 percent in 2023.

Transaction tax

On the basis of the previous regulation [Act CXVI of year 2012], the subject of the tax was only the credit institution, electronic money issuing institution, institution operating the Postal Settlement Center, payment institution, Hungarian National Bank and treasury, which perform payment service activities. In the past, the tax was a maximum of HUF 6,000 per payment transaction.

On the one hand, the government decree expands the scope of the subject of the tax. This now includes investment companies under Act CXXXVIII of 2007, and credit institutions under Act CCXXXVII of 2013. These entities are required to pay a transaction tax after purchases of financial instrument with an ISIN identifier issued by the KELER Központi Értéktár Zártkörűen Működő Részvénytársaság in favor of own account or customer account. The basis of the transaction tax is the value (purchase price) of the financial instrument credited to the customer account (securities account). If this value is denominated in a foreign currency, it must be converted into HUF at the official exchange rate published by the Hungarian National Bank on the day of execution.

The amount of the tax will not increase, it is 0.3 percent of the tax base, but the amount may not exceed HUF 10,000 per transaction instead of the previous HUF 6,000.

The purchase of the financial instrument is exempt from tax if the investment service is provided by the Hungarian State Treasury or the institution operating the Postal Settlement Center.

Surtax on producers of petroleum products

According to the government decree, the basis of the surtax is the product of the difference in the world market price of crude oil from the Russian Federation and the quantity, measured in barrels, of crude oil from the Russian Federation purchased in the relevant month. The purchase price is the purchase price specified in US dollars on the invoice, which cannot be reduced by costs related to additional purchases. The surtax rate is 25 percent. For the first time, the petroleum product producer must pay the surtax for the entire tax year starting after December 31, 2021 and including July 1, 2022.

Airlines surtax

The government decree introduces the “airlines’ contribution” surtax. According to this, air passenger transport activities under the Air Transport Act are subject to the surtax, and the economic organization providing ground-handling services as per this Act is obliged to pay the surtax.

Surtax rate is the following:

• if the passenger’s final destination is the Republic of Albania, the Principality of Andorra, Bosnia and Herzegovina, the Republic of North 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, the amount of the surtax is HUF 3,900 per passenger,
• the surtax is HUF 9,750 per passenger if someone flies to countries other than those specified above.

The entity obliged to pay the surtax must keep records suitable for determining the basis of the surtax.