Autumn tax package has been published - What are the main changes?

Other tax changes

On 30 November 2023, the Autumn Tax Package has been published, containing a number of changes for the tax years 2023-2025. Below we have summarized the most important changes, which affect, e.g., VAT, corporate income tax, personal income tax and other tax rules, and the new rules generated from the termination of the US-Hungary double taxation agreement. The rules on the global minimum tax were presented in a separate newsletter.

​​​​​​On the public health product tax (entry into force: the day after publication)

The modification brings into law the regulation under Government Decree 441/2023 (IX. 27.) on the different application of Act CIII of 2011 on the Public Health Product Tax during the emergency situation.

According to the amendment, recreational and leisure sports and health promotion programmes are activities, programmes, campaigns and investments supported by the work organisation of the Minister responsible for active Hungary from the head-managed appropriations for this purpose.

Advertising tax (entry into force: day after publication)

The amendment extends the application of the current legislation by a further year. Consequently, until 31 December 2024, the tax rate will remain 0% of the tax base and the relevant procedural and sanctioning provisions of the Advertising Tax Act will no longer apply (e.g.: customer tax obligations, payment of tax, tax advance, advance payment supplement, application of default penalties for non-compliance with certain tax obligations, assessment of presumed tax).

Retail tax (entry into force: day after publication)

The amendment stipulates that if the tax year is shorter than 12 months, the taxable amount of the taxpayer must be annualised, with the result that the tax payable is the proportion of the annual tax amount so calculated in relation to the calendar days of the tax year.

Local taxes (entry into force: 1 January 2024)

The amendment adds a definition of public service obligation under the Local Tax Act. People employed by bodies with special status in the public service or in an employment relationship will henceforth be exempt from the tourist tax if they are staying in the territory of the municipality in order to fulfil their public service obligations.

As a result of the amendment, the redemption fee (DRS) is neither part of the net turnover on which the local business tax is based nor of the acquisition value of the goods sold which reduce the net turnover when determining the taxable amount, but must be adjusted when determining the taxable amount.

Duties (entry into force: the day after publication)

The amendment exempts the acquisition of assets of a sole proprietor by an one-person limited liability company or a sole proprietorship established for the purpose of carrying on business activity from the transfer duty on assets in rem, which is justified by the change in the rules of the Personal Income Tax Act applicable to sole proprietors.

The new exemption will apply in cases where the assets of the sole proprietor are acquired by 31 December 2025, with the exemption being a state aid, which the acquirer can claim as a de minimis grant.

Should you have any questions regarding the autumn tax package, please contact our experts.