Changes to Hungarian Windfall Taxes and Transfer Pricing Rules for 2022 and 2023

The Hungarian government has decided to introduce windfall taxes effective 1 July 2022, allegedly in response to the COVID-19 pandemic and the invasion of Ukraine. It is arguable, however, that the main reason is the delay in and withdrawal of EU subsidies and the need to replenish budget resources. While the government has stated that these windfall taxes are targeted and temporary, it seems likely that they will persist until at least 2024.