On December 23, 2022, an amendment to Government Decree No. 197/2022 (VI. 4.) on the Extra Profit Taxes (hereinafter: the "Amendment") was published in the Official Hungarian Gazette, which introduced a new special tax requirement for manufacturers of pharmaceuticals.
Pursuant to the Amendment, the tax base of the special tax is the net sales revenue of the pharmaceutical manufacturer, which is determined by Act C of 1990 on Local Taxes. The rate of the special tax is (i) one percent (1%) of the tax base not exceeding HUF fifty (50) billion; (ii) three percent (3%) of the tax base portion exceeding HUF fifty (50) billion but not exceeding HUF one hundred-fifty (150) billion; (iii) eight percent (8%) on the tax base portion exceeding HUF one hundred-fifty (150) billion.
Pursuant to the Amendment, a pharmaceutical manufacturer is a (legal) person who pursues manufacturing under TEAOR 2120 (“manufacturing medicinal products”) and TEAOR 2110 (“manufacturing pharmaceutical raw materials”).
Manufacturers of pharmaceuticals must establish, declare, and remit payment of the special tax for the 2022 tax year by the twentieth (20th) day of the fifth (5th) month of the 2023 tax year (May 20, 2023). For the 2023 tax year, manufacturers of pharmaceuticals must establish, declare, and pay an advance of the special tax by the twentieth (20th) day of the eleventh (11th) month of the 2023 tax year (November 20, 2023).
The Amendment entered into force the day after it was published – which was December 24, 2022.