Hungary

Hungary

Introduces tax relief for the pharmaceutical industry

01 Jan 2024

On 17 July 2023, the Government of Hungary enacted Government Decree No. 317/2023 (VII.17.), amending provisions related to extra-profit taxes in the pharmaceutical industry. This amendment introduces tax relief, enabling taxpayers to reduce windfall tax and heightened clawback payment obligations by up to 50 per cent, contingent on investments in tangible assets and research and development costs from the preceding tax year. The pharmaceutical manufacturers may apply this relief to their 2024 windfall taxes, effective from 1 January 2024.