Hungary’s government concluded a public consultation on a draft bill proposing changes to various tax laws on 24 October 2024. The proposal seeks to amend tax laws in response to EU and Hungarian legislation changes, targeting global minimum tax, VAT, excise duties, financial transaction tax, and various tax procedures.
The new regulations will go into effect on 1 January 2025.
The amendments to the Global Minimum Tax Act propose revisions to the annexes to establish the UTPR percentage assigned to Hungary and refine the Act to define the domestic top-up tax.
The draft introduces changes to VAT regulations, including potential exemptions for insurance companies, provided they have no customs debts and are not liquidated. The legislation maintains the HUF 12 million VAT-exempt threshold.
Changes in excise duties include redefining fuels and allowing farmers to reclaim diesel. Furthermore, rail transit companies can now have the opportunity to recover electricity taxes.
Under current regulations, bank transactions processed through the Post Office Clearing Centre are free of charge up to HUF 50,000. Transactions exceeding this limit incur a financial transaction tax (FTT). Starting in 2025, this threshold will be reduced to HUF 20,000.
Earlier, Hungary increased the financial transaction tax from 0.3% to 0.45% and raised the maximum tax per transaction from HUF 10,000 to HUF 20,000. The tax on cash withdrawals will increase from 0.6% to 0.9%. These changes took effect on 1 October 2024.
