Category Taxation in Hungary

New Taxes Approved in Hungary

November 20, 2014 Taxation in Hungary

Taxes in HungaryBUDAPEST – Hungary will implement a series of new tax hikes on alcohol, shampoo, soap, and large foreign firms.

On November 18th the government of Hungary announced that a series of new taxes and tax hikes will be instated, despite the fact that a significant number taxpayers publically protested the changes during a widespread “public outrage day”.

Among the new tax rate hikes is a 10 percent increase to the top rate of the controversial advertising tax, increasing from 40 percent to 50 percent.

Other controversial measures include the extension of the current “chip tax” on unhealthy products to include alcohol, the extension of environmental fees to include shampoos, soaps and other healthcare products, and a hike to the rate of the so-called “Tesco fee” on foreign-owned locally-oper...

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Hungary Backs Down on Internet Tax

November 3, 2014 Taxation in Hungary

BUDAPEST – After intense public outcry and protesting, the government of Hungary has backed down on its decision to implement a tax on internet usage.

Late last week the Prime Minister of Hungary Viktor Orban announced that the government will now drop the proposal to enact a new tax on internet-usage in the country.

The internet-tax was first proposed earlier last month, and was planned to be charged at HUF 150 per gigabyte of internet usage.

The tax was met with immediate opposition from internet providers and taxpayers, with a significant number of people taking to the streets to openly protest the proposal.

In response to the protests, the government indicated that a maximum payment threshold should be set for the tax, with a HUF 700 per month cap for individuals, and a 5 000 per mon...

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Internet Tax on Horizon in Hungary

October 22, 2014 Taxation in Hungary

BUDAPEST – Internet access in Hungary is expected to become significantly more expensive, as the government plans to implement a usage-based tax on internet access.

At a press conference held on October 21st the Economics Minister of Hungary Mihály Varga announced a new proposal to levy a tax on internet access in the country at a rate of HUF 150 for each gigabyte used by a user.

Currently no taxes are levied on internet access, but a tax is applied on each minute of phone calls made, and also on each SMS message sent, and the Minister explained that the new tax has been proposed as an increasing amount of communication and messaging is now done not through traditional telephone or mobile networks, but via online applications.

The tax is expected to raise as much as HUF 20 billion per y...

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Hungary’s Retail Tax is Discriminatory

February 7, 2014 Taxation in Hungary

Taxation in HungaryBUDAPEST – The European Court has confirmed that Hungary should not have taxed the consolidated profits of EU-wide retail groups with operations in the country.

On February 5th the European Court of Justice ruled that the retail tax laws in Hungary may be discriminatory, and may provide an unfair advantage to local businesses over their foreign-owned competitors.

Under the contested tax rule all retail businesses with turnovers of more than HUF 500 million in Hungary are required to pay an extra tax of between 0.4 percent and 2.5 percent on the consolidated revenue of its entire corporate group in the EU.

The Court confirmed that many of the businesses which have to pay the tax are part of larger group of retailers across the Europe, and would be required to pay a disproportionately high...

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Hungary Cracks the Whip on Tax Evaders

January 16, 2013 Taxation in Hungary

HungaryBUDAPEST – Hungary will soon root out hidden assets and undeclared incomes stashed away by national taxpayers in bank accounts around the world.

At a press conference held in Budapest on January 16th the Prime Minister of Hungary Janos Lazar announced that the country will impose a tax of 35 percent on incomes and capitals which have been hidden away in overseas bank accounts by national taxpayers.

According to the Prime Minister, Hungarian taxpayers are currently hiding as much as EUR 6.5 billion in offshore bank accounts, with approximately half of the undeclared total being held in Switzerland.

For the last two years the government has allowed taxpayers to come forward and willingly declare their hidden assets in exchange for paying a lowered tax obligation of only 10 percent of their h...

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