{"id":3547,"date":"2023-10-19T13:16:00","date_gmt":"2023-10-19T11:16:00","guid":{"rendered":"https:\/\/ibsh.hu\/?p=3547"},"modified":"2026-04-13T15:36:04","modified_gmt":"2026-04-13T13:36:04","slug":"globe-to-be-introduced-to-hungary-ibsh","status":"publish","type":"post","link":"https:\/\/ibsh.hu\/en\/globe-to-be-introduced-to-hungary-ibsh\/","title":{"rendered":"GloBe\u00a0to\u00a0be\u00a0introduced\u00a0to Hungary\u00a0"},"content":{"rendered":"<p>The&nbsp;Ministry&nbsp;of&nbsp;Finance&nbsp;published&nbsp;a&nbsp;draft&nbsp;law&nbsp;on&nbsp;October&nbsp;18&nbsp;concerning&nbsp;the&nbsp;introduction&nbsp;of&nbsp;the&nbsp;Global Minimum&nbsp;Tax&nbsp;(GloBE),&nbsp;which&nbsp;includes&nbsp;the&nbsp;detailed&nbsp;regulations&nbsp;for&nbsp;implementing&nbsp;the&nbsp;global&nbsp;minimum&nbsp;tax&nbsp;in Hungary starting&nbsp;from&nbsp;January&nbsp;1, 2024.&nbsp;<\/p><p>In&nbsp;December&nbsp;2022,&nbsp;the&nbsp;European Union&nbsp;adopted&nbsp;the&nbsp;second&nbsp;pillar&nbsp;of&nbsp;the&nbsp;OECD&nbsp;international&nbsp;tax&nbsp;reform&nbsp;as&nbsp;a&nbsp;directive&nbsp;(EU 2022\/2523),&nbsp;which&nbsp;contains&nbsp;rules&nbsp;for&nbsp;the&nbsp;application&nbsp;of a minimum&nbsp;tax&nbsp;(Global Minimum&nbsp;Tax,&nbsp;GloBE)&nbsp;on&nbsp;multinational&nbsp;and&nbsp;large&nbsp;domestic&nbsp;corporate&nbsp;groups. The&nbsp;purpose&nbsp;of&nbsp;the&nbsp;regulation&nbsp;is&nbsp;to&nbsp;impose&nbsp;a&nbsp;so-called&nbsp;supplementary&nbsp;tax&nbsp;in&nbsp;cases&nbsp;where&nbsp;the&nbsp;effective&nbsp;tax&nbsp;burden&nbsp;on&nbsp;a&nbsp;company&nbsp;or&nbsp;corporate&nbsp;group&nbsp;in a&nbsp;given&nbsp;jurisdiction&nbsp;is&nbsp;below&nbsp;15%.&nbsp;<\/p><p>This&nbsp;provision&nbsp;applies&nbsp;to&nbsp;multinational&nbsp;and&nbsp;large&nbsp;domestic&nbsp;corporate&nbsp;groups&nbsp;whose&nbsp;revenue,&nbsp;based&nbsp;on&nbsp;their&nbsp;consolidated&nbsp;financial&nbsp;statements, has&nbsp;exceeded&nbsp;the&nbsp;threshold&nbsp;of 750&nbsp;million&nbsp;euros&nbsp;at&nbsp;least&nbsp;twice&nbsp;in&nbsp;the&nbsp;past&nbsp;four&nbsp;years.&nbsp;<\/p><p>The&nbsp;supplementary&nbsp;tax&nbsp;rate&nbsp;is&nbsp;equal&nbsp;to&nbsp;the&nbsp;difference&nbsp;between&nbsp;the&nbsp;minimum&nbsp;effective&nbsp;tax&nbsp;burden&nbsp;(15%) and&nbsp;the&nbsp;calculated&nbsp;actual&nbsp;tax&nbsp;rate.&nbsp;However,&nbsp;to&nbsp;calculate&nbsp;the&nbsp;actual&nbsp;tax&nbsp;rate,&nbsp;it&nbsp;is&nbsp;necessary&nbsp;to&nbsp;determine&nbsp;which&nbsp;taxes&nbsp;qualify&nbsp;as&nbsp;Covered&nbsp;Taxes,&nbsp;meaning&nbsp;those&nbsp;direct&nbsp;taxes&nbsp;imposed&nbsp;on&nbsp;the&nbsp;income&nbsp;or&nbsp;profits&nbsp;of&nbsp;companies&nbsp;operating&nbsp;within&nbsp;Hungary.&nbsp;According&nbsp;to&nbsp;the&nbsp;draft&nbsp;legislation,&nbsp;particularly&nbsp;but&nbsp;not&nbsp;exclusively,&nbsp;corporate&nbsp;income&nbsp;tax, local business&nbsp;tax,&nbsp;income&nbsp;tax&nbsp;of&nbsp;energy&nbsp;suppliers, and&nbsp;innovation&nbsp;contribution&nbsp;are&nbsp;considered&nbsp;Covered&nbsp;Taxes&nbsp;in Hungary.&nbsp;<\/p><p>Due&nbsp;to&nbsp;existing&nbsp;(e.g.,&nbsp;development&nbsp;tax&nbsp;incentives) and&nbsp;planned&nbsp;(R&amp;D&nbsp;tax&nbsp;incentives)&nbsp;state&nbsp;aid&nbsp;within&nbsp;the&nbsp;corporate&nbsp;tax&nbsp;system,&nbsp;it&nbsp;is&nbsp;important&nbsp;to&nbsp;note&nbsp;that&nbsp;the&nbsp;draft&nbsp;legislation&nbsp;(in line&nbsp;with&nbsp;the&nbsp;Directive)&nbsp;distinguishes&nbsp;between&nbsp;recognized&nbsp;and&nbsp;unrecognized&nbsp;non-refundable&nbsp;tax&nbsp;incentives.&nbsp;Unrecognized&nbsp;tax&nbsp;incentives&nbsp;(such&nbsp;as&nbsp;the&nbsp;current&nbsp;form&nbsp;of&nbsp;development&nbsp;tax&nbsp;incentives)&nbsp;may&nbsp;have&nbsp;a&nbsp;negative&nbsp;impact&nbsp;on&nbsp;the&nbsp;calculated&nbsp;actual&nbsp;tax&nbsp;rate,&nbsp;thereby&nbsp;increasing&nbsp;the&nbsp;amount&nbsp;of&nbsp;supplementary&nbsp;tax&nbsp;payable.&nbsp;However,&nbsp;with&nbsp;the&nbsp;introduction&nbsp;of&nbsp;the&nbsp;new&nbsp;R&amp;D&nbsp;tax&nbsp;incentives&nbsp;proposed&nbsp;by&nbsp;the&nbsp;law, a&nbsp;tax&nbsp;incentive&nbsp;may&nbsp;enter&nbsp;the&nbsp;corporate&nbsp;tax&nbsp;system&nbsp;that&nbsp;qualifies&nbsp;as&nbsp;a&nbsp;recognized&nbsp;refundable&nbsp;tax&nbsp;incentive&nbsp;and&nbsp;does&nbsp;not&nbsp;increase&nbsp;the&nbsp;amount&nbsp;of&nbsp;supplementary&nbsp;tax&nbsp;payable.&nbsp;<\/p><p>If\u00a0you\u00a0would\u00a0like\u00a0further\u00a0details\u00a0or\u00a0have\u00a0any\u00a0questions,\u00a0<a href=\"https:\/\/ibsh.hu\/kapcsolat\/\" data-type=\"link\" data-id=\"https:\/\/ibsh.hu\/kapcsolat\/\">please\u00a0contact\u00a0our colleagues<\/a>.<\/p><p><\/p>","protected":false},"excerpt":{"rendered":"<p>The&nbsp;Ministry&nbsp;of&nbsp;Finance&nbsp;published&nbsp;a&nbsp;draft&nbsp;law&nbsp;on&nbsp;October&nbsp;18&nbsp;concerning&nbsp;the&nbsp;introduction&nbsp;of&nbsp;the&nbsp;Global Minimum&nbsp;Tax&nbsp;(GloBE),&nbsp;which&nbsp;includes&nbsp;the&nbsp;detailed&nbsp;regulations&nbsp;for&nbsp;implementing&nbsp;the&nbsp;global&nbsp;minimum&nbsp;tax&nbsp;in Hungary starting&nbsp;from&nbsp;January&nbsp;1, 2024.&nbsp; In&nbsp;December&nbsp;2022,&nbsp;the&nbsp;European Union&nbsp;adopted&nbsp;the&nbsp;second&nbsp;pillar&nbsp;of&nbsp;the&nbsp;OECD&nbsp;international&nbsp;tax&nbsp;reform&nbsp;as&nbsp;a&nbsp;directive&nbsp;(EU 2022\/2523),&nbsp;which&nbsp;contains&nbsp;rules&nbsp;for&nbsp;the&nbsp;application&nbsp;of a minimum&nbsp;tax&nbsp;(Global Minimum&nbsp;Tax,&nbsp;GloBE)&nbsp;on&nbsp;multinational&nbsp;and&nbsp;large&nbsp;domestic&nbsp;corporate&nbsp;groups. The&nbsp;purpose&nbsp;of&nbsp;the&nbsp;regulation&nbsp;is&nbsp;to&nbsp;impose&nbsp;a&nbsp;so-called&nbsp;supplementary&nbsp;tax&nbsp;in&nbsp;cases&nbsp;where&nbsp;the&nbsp;effective&nbsp;tax&nbsp;burden&nbsp;on&nbsp;a&nbsp;company&nbsp;or&nbsp;corporate&nbsp;group&nbsp;in a&nbsp;given&nbsp;jurisdiction&nbsp;is&nbsp;below&nbsp;15%.&nbsp; This&nbsp;provision&nbsp;applies&nbsp;to&nbsp;multinational&nbsp;and&nbsp;large&nbsp;domestic&nbsp;corporate&nbsp;groups&nbsp;whose&nbsp;revenue,&nbsp;based&nbsp;on&nbsp;their&nbsp;consolidated&nbsp;financial&nbsp;statements, has&nbsp;exceeded&nbsp;the&nbsp;threshold&nbsp;of 750&nbsp;million&nbsp;euros&nbsp;at&nbsp;least&nbsp;twice&nbsp;in&nbsp;the&nbsp;past&nbsp;four&nbsp;years.&nbsp; The&nbsp;supplementary&nbsp;tax&nbsp;rate&nbsp;is&nbsp;equal&nbsp;to&nbsp;the&nbsp;difference&nbsp;between&nbsp;the&nbsp;minimum&nbsp;effective&nbsp;tax&nbsp;burden&nbsp;(15%) and&nbsp;the&nbsp;calculated&nbsp;actual&nbsp;tax&nbsp;rate.&nbsp;However,&nbsp;to&nbsp;calculate&nbsp;the&nbsp;actual&nbsp;tax&nbsp;rate,&nbsp;it&nbsp;is&nbsp;necessary&nbsp;to&nbsp;determine&nbsp;which&nbsp;taxes&nbsp;qualify&nbsp;as&nbsp;Covered&nbsp;Taxes,&nbsp;meaning&nbsp;those&nbsp;direct&nbsp;taxes&nbsp;imposed&nbsp;on&nbsp;the&nbsp;income&nbsp;or&nbsp;profits&nbsp;of&nbsp;companies&nbsp;operating&nbsp;within&nbsp;Hungary.&nbsp;According&nbsp;to&nbsp;the&nbsp;draft&nbsp;legislation,&nbsp;particularly&nbsp;but&nbsp;not&nbsp;exclusively,&nbsp;corporate&nbsp;income&nbsp;tax, local business&nbsp;tax,&nbsp;income&nbsp;tax&nbsp;of&nbsp;energy&nbsp;suppliers, and&nbsp;innovation&nbsp;contribution&nbsp;are&nbsp;considered&nbsp;Covered&nbsp;Taxes&nbsp;in Hungary.&nbsp; Due&nbsp;to&nbsp;existing&nbsp;(e.g.,&nbsp;development&nbsp;tax&nbsp;incentives) and&nbsp;planned&nbsp;(R&amp;D&nbsp;tax&nbsp;incentives)&nbsp;state&nbsp;aid&nbsp;within&nbsp;the&nbsp;corporate&nbsp;tax&nbsp;system,&nbsp;it&nbsp;is&nbsp;important&nbsp;to&nbsp;note&nbsp;that&nbsp;the&nbsp;draft&nbsp;legislation&nbsp;(in line&nbsp;with&nbsp;the&nbsp;Directive)&nbsp;distinguishes&nbsp;between&nbsp;recognized&nbsp;and&nbsp;unrecognized&nbsp;non-refundable&nbsp;tax&nbsp;incentives.&nbsp;Unrecognized&nbsp;tax&nbsp;incentives&nbsp;(such&nbsp;as&nbsp;the&nbsp;current&nbsp;form&nbsp;of&nbsp;development&nbsp;tax&nbsp;incentives)&nbsp;may&nbsp;have&nbsp;a&nbsp;negative&nbsp;impact&nbsp;on&nbsp;the&nbsp;calculated&nbsp;actual&nbsp;tax&nbsp;rate,&nbsp;thereby&nbsp;increasing&nbsp;the&nbsp;amount&nbsp;of&nbsp;supplementary&nbsp;tax&nbsp;payable.&nbsp;However,&nbsp;with&nbsp;the&nbsp;introduction&nbsp;of&nbsp;the&nbsp;new&nbsp;R&amp;D&nbsp;tax&nbsp;incentives&nbsp;proposed&nbsp;by&nbsp;the&nbsp;law, a&nbsp;tax&nbsp;incentive&nbsp;may&nbsp;enter&nbsp;the&nbsp;corporate&nbsp;tax&nbsp;system&nbsp;that&nbsp;qualifies&nbsp;as&nbsp;a&nbsp;recognized&nbsp;refundable&nbsp;tax&nbsp;incentive&nbsp;and&nbsp;does&nbsp;not&nbsp;increase&nbsp;the&nbsp;amount&nbsp;of&nbsp;supplementary&nbsp;tax&nbsp;payable.&nbsp; If\u00a0you\u00a0would\u00a0like\u00a0further\u00a0details\u00a0or\u00a0have\u00a0any\u00a0questions,\u00a0please\u00a0contact\u00a0our colleagues.<\/p>","protected":false},"author":3,"featured_media":3548,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[84],"tags":[289],"ppma_author":[154],"class_list":["post-3547","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized-en","tag-tax-advisory","infinite-scroll-item","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"lang":"en","translations":{"en":3547},"authors":[{"term_id":154,"user_id":3,"is_guest":0,"slug":"kantor-adrienn","display_name":"Ol\u00e1h-K\u00e1ntor Adrienn","avatar_url":{"url":"https:\/\/ibsh.hu\/wp-content\/uploads\/2024\/01\/olah-kantor-adrienn.jpg","url2x":"https:\/\/ibsh.hu\/wp-content\/uploads\/2024\/01\/olah-kantor-adrienn.jpg"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":"","8":""}],"_links":{"self":[{"href":"https:\/\/ibsh.hu\/en\/wp-json\/wp\/v2\/posts\/3547","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ibsh.hu\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ibsh.hu\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ibsh.hu\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/ibsh.hu\/en\/wp-json\/wp\/v2\/comments?post=3547"}],"version-history":[{"count":3,"href":"https:\/\/ibsh.hu\/en\/wp-json\/wp\/v2\/posts\/3547\/revisions"}],"predecessor-version":[{"id":3568,"href":"https:\/\/ibsh.hu\/en\/wp-json\/wp\/v2\/posts\/3547\/revisions\/3568"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ibsh.hu\/en\/wp-json\/wp\/v2\/media\/3548"}],"wp:attachment":[{"href":"https:\/\/ibsh.hu\/en\/wp-json\/wp\/v2\/media?parent=3547"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ibsh.hu\/en\/wp-json\/wp\/v2\/categories?post=3547"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ibsh.hu\/en\/wp-json\/wp\/v2\/tags?post=3547"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/ibsh.hu\/en\/wp-json\/wp\/v2\/ppma_author?post=3547"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}