The Hungarian Government issued a new government decree (no 356/2024) on 21st November 2024, which amends the extra profit tax regulations including the rules for insurance premium tax (EPTIPT).
The new decree extends the extra profit tax on insurance premiums for another year. The updated termination date is 31st December 2025. Not only the applicable rates, but also the brackets were changed for the 2025. The brackets and rates for 2025 are the following:
A) Non-life insurance policies:
- 3% up to HUF 48 billion
- 14% over HUF 48 billion
B) Life insurance policies:
- 2% up to HUF 48 billion
- 6% over HUF 48 billion
The rules for prepayments (PP) were also changed. For 2025 there will be only one prepayment (declaration and payment), which will be due by 10th December 2025. The basis of the 2025 EPTIPT PP is the amount of the premiums collected between 1st January and 30th November 2025.
The rules for 2025 EPTIPT settlements remain more or less the same. 2025 EPTIPT is payable by 31st January 2026 and 31st July 2026 alongside the submission of the returns. The overpaid amount, i.e. the excess 2025 PP, can be reclaimed from 31st July 2026.
The government decree includes an option to reduce the amount of the prepayment and also the 2025 EPTIPT due with 30% of the increase in the nominal value of the stock of government securities (Hungarian Government Bonds denominated in forints and placed on the market as part of an auction, expiring after 1st January 2030) by applying certain limitations.
