The Hungarian parliament is reviewing a draft bill that includes various tax measures for individuals and corporations. Key among these is a new payment obligation related to Hungary’s adoption of the Pillar 2 global minimum tax (GloBE) rules, which were approved in line with EU Directive 2022/2523 at the end of 2023. These rules include an income inclusion rule (IIR), an undertaxed payment/profit rule (UTPR), and a qualified domestic minimum top-up tax (QDMTT) for relevant groups. The proposed payment obligation requires a domestic group member or a designated local entity to establish, declare, and pay a QDMTT advance by the 20th day of the 11th month after the end of the tax year. For the first tax year starting on January 1, 2024, this advance is due by November 20, 2025.
Additionally, the bill proposes expanding the retail sales tax, which is a progressive tax with a top rate of 2.7% on sales over HUF 100 billion. The expansion would include both resident and non-resident platform operators providing online marketplaces for retail sellers. These operators would be responsible for the tax on sales they facilitate and make themselves. Non-compliance could lead to the blocking of access to the online marketplace.
