HUNGARY LAW AND PRACTICE Contributed by: Pál Szabó, Barnabás Simon, Eszter Katona, Ádám Simon, Mihály Harcos, Karim Laribi, Gábor Kutai and István Szalay-Csala, Bird & Bir d
to distribute media content to the general public via an electronic communications network or a printed press product. In such cases the prior approval of the Media Council shall be submitted with the petition to GVH, or the GVH suspends the merger control proce - dure until the Media Council’s approval is granted. The Media Council issues its decision within 120 days and, if no decision is issued, the approval is deemed to have been granted. The Media Council’s rejection to approve the transaction is binding on the GVH which then cannot approve the concentration. Foreign Subsidy Regulation (FSR) Lastly, Regulation (EU) 2022/2560 of the European Parliament and of the Council of 14 December 2022 on foreign subsidies distorting the internal market (FSR) has also been (directly) applicable in Hungary as of 12 July 2023. Under the FSR, the European Com - mission has the power to investigate financial contri - butions granted by non-EU governments to compa - nies active in the EU to ensure a level playing field for all companies. During summer 2025, the Commission launched the first review of the FSR on how to improve the regulation’s implementation and enforcement, with the result report to be published early 2026. 9. Tax 9.1 Taxation of Business Activities The following main taxes apply to businesses in Hun - gary. Corporate Income Tax Companies that are resident in Hungary for tax pur - poses are subject to corporate income tax on their worldwide income. Companies that operate in Hun - gary without being resident in Hungary for tax pur - poses are subject to corporate income tax on their Hungarian source income. The calculation of the corporate income tax is, in gen - eral, based on the accounting pre-tax profit, modified by certain tax base adjustment items. The corporate income tax rate is 9%. Global minimum corporate income tax is also levied on certain taxpayers in line with Directive (EU) 2022/2523
on ensuring a global minimum level of taxation for mul - tinational enterprise groups and large-scale domestic groups in the EU. Value Added Tax (VAT) Hungary’s VAT regulation is based on the EU VAT Directives. The standard VAT rate is 27%. Reduced rates of 18% and 5% apply to certain goods and ser - vices. Local Business Tax Local municipalities levy local business tax on com - panies having their seat or tax-permanent establish - ment in the territory of the respective municipality. The basis of the local business tax is the accounting net sales revenue, modified by certain tax base adjust - ing items. The rate of the local business tax varies between 0-2%, depending on the regulations of the
different municipalities. Innovation Contribution
The base of the innovation contribution is identical to the local business tax base. The rate of the innova - tion contribution is 0.3%. Tax exemption applies to newly established companies and micro or small-size
businesses. Transfer Tax
The acquisition of Hungarian real property, certain rights to such properties or shares of companies qualifying as Hungarian real estate holding entities may be subject to transfer tax, on the basis of the fair market value of the real property, at a rate of 4% up to a fair market value of HUF1 billion (approximately EUR2.5 million) and 2% with respect to that part of the fair market value that exceeds the HUF1 billion (approximately EUR2.5 million) threshold, but a maxi - mum of HUF200 million (approximately EUR500,000) per real property. Building Tax and Land Tax Municipalities are entitled to levy tax on building own - ers and owners of lands in their territories. Other Taxes Beside the above main taxes, special taxes are lev - ied on companies engaged in certain businesses or
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