The Hungarian Government recently announced a new Government Decree (No. 52/2024), which alters the existing IPT regulations. The rules outlined in this decree have not been integrated into the IPT law (No. 102/2012), and apply from the April 2024 period which is due to be settled by 20th May 2024.
According to the new rules, if the taxable premium is less than HUF 20 billion (formerly HUF 8 billion) in the tax year immediately preceding the reporting period, then the applicable IPT rate in the reporting month should be:
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25% of the standard IPT rate (10%/15%) for taxable premium up to HUF 250 million (the previous bracket was HUF 100 million): meaning a 2.5% /3.75% effective IPT rate
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50% of the standard IPT rate for taxable premium between HUF 250 million and 1.75 billion (the previous bracket was between HUF 100 million and 700 million): meaning a 5%/7.5% effective IPT rate
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100% of the standard IPT rate for taxable premium exceeding HUF 1.75 billion (increased from HUF 700 million): meaning the application of the standard IPT rates of 10%/15%.
In 2024, there is no change for insurers with premium income over HUF 20 billion in 2023.
The return template and the Tax Office Guidance covering this amendment have not been issued yet.
