Hungary: Government Decree on Insurance Extra Profit Tax Amended Again

Edit Buliczka

January 5, 2023

The Hungarian government published a new decree (No. 258/2022) on 24 December 2022. It was enforced on 25 December 2022 and modifies the initial government decree (No. 197/2022) regarding the imposition of extra profit taxes. It’s the second revision to the initial decree within six months that changes the requirements for the so-called insurance extra profit tax.

The first amendment (No. 257/2022) altered the 2022 prepayment calculation whereas this second amendment changes the tax rates for 2023. The latest decree affects the final scale (premium collected in 2023 above 36 bn Hungarian Forints) for both non-life and life insurance premiums. For premium amounts collected from non-life policies, the rates rose from 7% to 12% and from life policies, from 3% to 5%.

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Author

Edit Buliczka

Edit is a senior regulatory counsel. She joined Sovos in January 2016 and has extensive IPT knowledge and experience. Her role ensures the IPT teams and systems at Sovos are always updated with legislative changes. She is a Hungarian registered tax expert and chartered accountant and has worked for companies in Hungary including Deloitte and KPMG and as an indirect tax manager she worked for AIG in Budapest. She graduated with an economist degree from Budapest Business School, faculty of finance and accountancy and also she has a postgraduate diploma from ELTE Legal University in Budapest.

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