Global Daily Tax News, Hungary Extends Financial Sector Windfall Tax, (Dec 26, 2024)

Hungary is extending the nation's windfall taxes on banking and insurance services providers.

Government Decree 356/2024, published in the Official Gazette late last month, provides that these windfall taxes will apply during 2025.

Other windfall taxes, introduced in 2022 alongside the financial services sector windfall tax, will expire at the end of this year, including additional taxes on telecommunications companies, pharmaceutical companies, airlines, and energy suppliers, among others.

The rate of tax on credit institutions and financial institutions will be seven percent on taxable amounts up to HUF20bn, while an 18 percent rate will apply on the excess.