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Tax package in Hungary – a summary of the main changes

The 2024 tax package bill accepted by the Hungarian Parliament on 4 July 2023, brings changes in various areas. One notable change is the transformation of the excess profit tax, which becomes a green tax for airlines, together with the introduction of a contribution based on emissions per passenger. Additionally, in the realm of personal income tax, measures stemming from emergency government decrees are elevated to legal status. This includes benefits for young mothers, support for chronically ill and disabled children, and an increase in commuting cost reimbursements. For simplified employment, social contributions and pension funds align with the minimum wage.

Changes are also on the horizon for bank tax, transaction fees, and income tax for energy providers through the elevation of emergency government decrees to legal status. Excise tax on fuels will also increase to comply with EU minimum tax standards, with changes in diesel tax rates as well.

Entrepreneurs must consider appointing a registered certified accountant if their annual net revenue surpasses HUF 20 million. The training and oversight of tax advisors and experts will be governed by a regulatory authority.

In addition to the bill, the Government implemented further modifications effective from 1 July 2023. Notably, the tax rate for petroleum product producers will decrease to 1 percent next year (from 2.8 percent). Rules regarding airline contributions, mining royalties and extraction obligations have also changed for companies operating in government-designated hydrocarbon fields. Within the framework of the Extended Producer Responsibility (EPR) system, the Government revised the description of the term "advertising carrier paper."