The Hungarian Government has modified the government decree (No. 197/2022) regulating the imposition of extra profit taxes as part of the 2024 Bill again. The new decree (No. 206/2023) published in the Hungarian National Gazette on 1 June 2023 is in effect as of 2 June 2023.
The new decree extends the extra profit tax on insurance premiums for another year. The updated termination date is 31 December 2024.
The applicable rates for the 2024 year will be the same as those for 2023. The rates for the aggregated annual premium for non-life policies – including Class 10, motor third party liabilities, but excluding the exempt premium amounts – will be:
- 2% up to HUF 2 billion
- 4% between HUF 2 billion and 36 billion
- 12% over HUF 36 billion
The rates on life insurance premium, excluding the exempt premium amounts will be:
- 1% up to HUF 2 billion
- 1.5% between HUF 2 billion and 36 billion
- 5% over HUF 36 billion
The rules for prepayments remain the same, meaning the prepayment for 2024 is required by 31 May 2024. The amount of the prepayment for 2024 is equal to the extra profit tax paid for 2023. The final settlement deadline for 2024 will be 31 January 2025.
