The extra profit tax rate for energy companies in Hungary amounts to 2.8% and will remain the same in 2023. From 2024, this figure will be reduced to 1%. The change will be particularly welcome for MOL, a leading oil and gas company, which has been paying very high taxes.
The reduction will not be automatic and can only be applied if these companies carry out investment and research activities.
Energy prices started to rise significantly in 2021, further exacerbated by sanctions imposed in response to the war in Ukraine. The sector has seen an unjustifiable accumulation of profits, primarily for companies specializing in the production, refining, and distribution of gas and oil. As a result, various sectoral levies have been introduced across Europe to mitigate the damage caused by the crisis by redistributing the corresponding revenues.
