Hungary to Tax Retailers for Revenue in Fight Against Virus

Hungary will impose a special tax on the retail sector to raise money to fight the coronavirus crisis.

The tax will be 0.1% on annual net sales higher than 500 million Hungarian forint ($1.56 million) and up to 30 billion forint; 0.4% on sales exceeding 30 billion and up to 100 billion forint; and 2.5% on sales exceeding 100 billion forint, according to a decree published Tuesday.

The tax will be in effect from May 1, and is to be paid in monthly installments until the end of the state-declared coronavirus emergency.

Both resident and non-resident retailers must pay the tax, according to the decree.

Affiliated companies will have their net sales consolidated for the purpose of setting the applicable tax rate.

The decree follows last week’s announcement that Hungarian banks will pay 55 billion Hungarian forint this year in a special tax on the financial sector.