Hungary issued the Government Decree 356/2024 in the Official Gazette on 21 November 2024, amending Government Decree 197/2022 on temporary windfall taxes on additional profits. The Decree also scraps some windfall taxes while modifies and extends others into 2025.
The Decree proposed windfall taxes have been abolished on net turnover of oil producers, renewable energy companies and balancing capacity, pharmaceutical manufacturers and distributors, telecom companies, airlines, mining royalties, and energy suppliers linked to manufacturing industries, including bioethanol producers, sunflower oil producers.
The Government Decree 356/2024 will take effect on 1 January 2025.
Windfall taxes on financial companies
The Government Decree also modified and extended windfall taxes on financial institutions. Windfall taxes on financial companies are extended to 2025, with a 7% rate on profits up to HUF 20 billion and 18% on profit earnings exceeding the stated amount.
Progressive surcharge on insurance premiums for 2025
Non-life insurance:
- 3% on premiums up to HUF 48 billion;
- 14% on premiums exceeding HUF 48 billion.
- Life insurance:
- 2% on premiums up to HUF 48 billion;
- 6% on premiums exceeding HUF 48 billion.
