Other taxes:
the Robin Hood tax, advertisement tax,
extending the scope of the promulgated international agreements 

The Robin Hood tax (the income tax of energy suppliers)

In a similar way as in corporate income tax, the income tax of energy suppliers has been amended in respect of the tax base reduction related to electric charging stations. The product of the tax base reduction for the electric charging station, and the tax rate of 31% should qualify as de minimis aid, and therefore be included in the de minimis aid received in the tax year. The change applies to returns filed after 31 January 2022. The previously applicable cap on the tax base deduction for electric charging stations will be abolished with effect from this year.

However, also in line with the changes to corporate income tax, a taxpayer may opt for treatment as "Limited Amounts of Aid " as defined in section 2.1 of the Crisis Communication. The election can be made for the first time in the tax return filed after 31 January 2022. If necessary, the already filed tax return should be corrected by self-correction in respect of the election to treat this tax base reduction.

Advertisement tax

The amendment extended the 0% tax rate in force from 1 July 2019 until 31 December 2023. There is no obligation to provide statements on the advertisement tax liability or file a tax return until that date.

At the same time, the amendment extended the time scope of the transitional provision of the Corporate Income Tax Act related to the tax base increase for advertising expenses under CIT Act Annex 3, Part A, point 16. This tax base increase should not be applicable until 31 December 2023. Therefore, the costs incurred in connection with the publication of an advertisement (including the remuneration due to the publisher of the advertisement or to the person who contributes to the publication of the advertisement), even if the amount of such costs exceeds HUF 30 million in the tax year and the company does not have a declaration of the person subject to the advertising tax or the person subject to the advertising tax is not included in the relevant tax authority database, should still be considered as costs deductible for corporate income tax purposes in 2023.

Financial transaction tax (FTT)

With effect from the day following the promulgation of the law amendment, the definition of an ‘immediate transfer order submitted via a uniform data entry solution or initiated by a payment request’ was introduced in the FTT Act, too. This type of financial transaction is also exempted from the obligation to pay FTT if the payer is a natural person who is an account holder (with the exception of a natural person paying in a self-employed capacity).

Similarly, on the day after the law was amended, the scope of exemptions from the FTT was extended to include payment transactions performed by a payment service provider from the payment accounts held by natural persons, legal entities or other legal arrangements (in particular, a company, a civil partnership contract, a trust deed or a foundation) resident in another EU Member State. When determining the exemption, the residence of natural persons should be determined in accordance with the tax residence rules of the Personal Income Tax Act. For legal persons and other legal arrangements, the place of effective management of the business should be decisive. 

Tourism development contribution

Pursuant to Government Decree 468/2022 (XI.21.), for the period from 1 October 2022 to 31 March 2023, the tourism development contribution should not be assessed, declared and paid.

Proposed changes to the SZÉP Card regulation

According to Government Decision 1554/2022 (XI.21.), the Ministry of Finance should submit a proposal to the Government by 1 December 2022 for the abolition of sub-accounts within the SZÉP Card.

International agreements

The scope of the Hungarian laws enacting the automatic exchange of information on financial accounts, the exchange of Country-by-Country Reports and the adoption of the Multilateral Convention has been extended to include new jurisdictions that have joined these agreements in the meantime.

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This newsletter provides general information and does not constitute tax advice