From 1 July 2022, a supplemental IPT will be introduced by the Hungarian Government. The government decree (197/2022) is an addition to the existing IPT Law (Act 102/ 2012) and was published on 4 June 2022. The supplemental IPT is an additional charge to be borne by insurers. It is paid on top of the existing IPT but only for a period of 18 months and will end on 1 January 2024.
When is Hungary’s supplemental IPT due?
The supplemental IPT is due on non-life and life insurance policies written by both Freedom of Establishment and Freedom of Services insurers. A similar sliding scale regime on the income collected is applicable for this new supplemental IPT as for the existing IPT.
For non-life policies
The rates are as follows for income collected between 1 July – 31 December 2022:
- 4% up to HUF 1 billion
- 8% between HUF 1 billion and 18 billion
- 14% over HUF 18 billion
For income collected between 1 January – 31 December 2023:
- 2% up to HUF 2 billion
- 4% between HUF 2 billion and 36 billion
- 7% over HUF 36 billion
For life policies
The rates are as follows for income collected between 1 July – 31 December 2022:
- 2% up to HUF 1 billion
- 3% between HUF 1 billion and 18 billion
- 6% over HUF 18 billion
For income collected between 1 January – 31 December 2023:
- 1% up to HUF 2 billion
- 1,5% between HUF 2 billion and 36 billion
- 3% over HUF 36 billion
When should Hungary’s supplemental IPT be paid?
July – December 2022 period: payment by 31 January 2023
January – December 2023 period: payment by 31 January 2024
A prepayment is due to be paid by 30 November 2022 and by 31 May 2023.
The corresponding declarations have yet to be published on the Hungarian Tax Office website.
