The most recent measures of the Hungarian Government, adopted and announced on 14 April 2020

The most recent measures of the Hungarian Government, adopted and announced on 14 April 2020 within the frameworks of the Economic Protection Action Plan, in order to fill up the Epidemiological Fund, are as follows:

1. In respect of the tax year 2020, a so-called epidemiological extra tax will be introduced, payable by the credit institutions. The tax is payable after the portion of the tax base defined in Act LIX of 2006 on the Extra Tax and Allowance to Improve the State Budget Balance (hereinafter referred to as the Extra Tax Act) that exceeds 50 billion HUF. The extra tax rate is 0.19%.

The amount of the financial support provided to the spectator- and team sports organizations in line with the Extra Tax Act may reduce the extra tax payment obligation.

2. In respect of the tax year including any single day between 1 May 2020 and the end of the current emergency situation, the net sales revenue of enterprises performing retail trading activities shall include the income gained from the services provided by the taxable entity to the supplier of the products procured for the purpose of retail sale and the amount of the discount provided by the supplier of the products procured by the enterprise for the purpose of retail sale.

The tax rates are the following:

TAX BASE                                                                                                                        TAX RATE
up to 500 million HUF                                                                                                   0%
in respect of the portion between 500 million HUF and 30 billion HUF               0.1%
in respect of the portion between 30 billion HUF and 100 billion HUF                 0.4%
in respect of the portion exceeding 100 billion HUF                                               2.5%

The detailed provisions concerning the above are included in volume 73 of the Hungarian Official Gazette, available here.