On 17 July 2023, Hungary published Government Decree 317/2023 in the Official Gazette amending Government Decree 197/2022 on temporary windfall taxes on additional profits. One of the most important changes is the extension of the windfall tax to producers of petroleum products. The 2.8% tax rate, calculated based on net sales derived from the annual report of the 2022 tax year, is extended to cover the tax years 2023 and 2024, with a reduced tax rate of 1.0% applicable for 2024.
Another significant change is that pharmaceutical companies can reduce their special tax liability for tax year 2024 by the cost of research and development investment activity aimed at the acquisition or production of tangible assets.
