Hungary introduced Tax on Advertisements
Taxable activities include the publication of advertisements of least 50% in Hungarian language by the media service provider (in media services – eg. television, radio, press products distributed in Hungary, internet, outdoor advertisements, vehicles, printed material, real estate). The company who orders the publication of advertisements can also become subject of the advertisement tax unless receives a declaration from the media service provider saying that the tax is payable by the media service provider and that the media service provider shall declare and pay the advertisement tax or saying that the media service provider has no obligation to pay the advertisement tax in the actual financial year.
The tax base for media service providers is the net annual advertising revenue including the cost of self-advertising (all the costs directly arising in relation to the publication of the self-advertising).
The tax rate applicable to media service providers is progressive:
| Annual net ad revenues (incl. direct cost of self-promotion) HUF | Tax rate |
| 0 – 0.5 billion | 0% |
| 0.5 – 5 billion* | 1%* |
| 5 – 10 billion | 10% |
| 10 – 15 billion | 20% |
| 15 – 20 billion | 30% |
| 20 billion – | 40% |
The tax rate and tax base applicable to the advertiser is 20% of the value of the ordered ads over the amount of HUF 2.5M on a monthly basis.
In case you want to find out more about the advertisement tax, please contact us.