On 31 May 2023, Hungary released Government Decree 206/2023 in the Official Gazette amending Government Decree 197/2022 regarding temporary windfall taxes on additional profits. The decree includes extension of certain taxes until 2024 and making adjustments to the tax base and tax rates. The decree entered into force in principle on 31 May 2023 and the Decree 197/2022 will remain in force until 1 January 2025.

For the tax year 2024, there have been adjustments made to the tax base of the special tax on credit and financial institutions. Additionally, new tax rates have been introduced, whereby 13% applies to the portion of the tax base not exceeding HUF 20 billion, and 30% applies to the excess amount.

The temporary special tax imposed on pharmaceutical manufacturers will continue until the 2024 tax year. However, the applicable rates have been revised as follows: (i) 0.5% for the portion of the tax base that does not exceed HUF 50 billion, (ii) 1.5% for the portion of the tax base exceeding HUF 50 billion but not exceeding HUF 150 billion, and (iii) 4.0% for the portion that exceeds HUF 150 billion.

The progressive surcharge on insurance premiums for insurance companies remains the same with a tax rate of 10% (as in 2023). Starting from 2023, retail companies are obligated to pay a progressive tax determined by their net sales. The tax rates for 2024 remain unaltered, with a 0% rate applied if the tax base falls below HUF 500 million. But, for the bracket ranging from HUF 500 million to 30 billion, the rate increases from 0.1% to 0.15%. In the third bracket, encompassing the range between 30 billion and 100 billion, the rate remains unchanged at 1%. As for the fourth bracket, where the tax base exceeds 100 billion, the rate escalates from 4.1% to 4.5%.