New excess profit tax to come in Hungary
The Hungarian government has amended the Excess Profits Tax Decree to introduce a special tax on pharmaceutical manufacturers in proportion to their turnover. This will bring significant extra revenue to an otherwise struggling public budget in 2023.
On the last working day before 24 December, a total of 420 pages of new legislation or amendments to legislation were published in two different issues of the Hungarian Gazette. One of the most interesting of these is a government decision to supplement the excess profits tax decree published in the summer with a new type of special tax, Portfolio reports.
The essence of this government decision is that the pharmaceutical manufacturer is obliged to assess, declare and pay the special tax for the tax years 2022 and 2023 as provided for in this paragraph.
The tax rate under this section shall be…
- 1 percent on the part of the net turnover determined on the basis of the annual accounts for the tax year not exceeding HUF 50 billion
- 3 percent on the part of the net turnover determined on the basis of the annual accounts for the tax year exceeding HUF 50 billion but not exceeding HUF 150 billion,
- 8 percent on the part of the net turnover determined on the basis of the annual accounts for the tax year exceeding HUF 150 billion.
The decree, signed by Viktor Orbán, entered into force on 24 December.
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Source: Portfolio.hu
3 Comments
Excess profit is usually a sign of success. Those who punish success end up with failure
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Hungary just published, that there is a medicine shortage.
So waht does the gov. about it? Increase the shortage, by making trade less profitable in that exact sector. Truly amazing.
How about reducing gov. expenditure, that is literally the same amount, as every other transaction combined, and then lowering taxes?
The continuation, to detract INVESTMENT into Hungary, by economic & financial decisions arising out of the Victor Orban led Government of Hungary that are bewildering.
This present Government, through the capitulation downwards on-going of the Hungarian economy, displaying irrational decision making, that is worsening the immediate and long term position of the Hungarian economy.
What is the attraction to Invest into Hungary?