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%.
