The government introduces an advertising tax, no payment required below 500 million revenue

The Hungarian government has introduced a new advertising tax with a tiered structure based on revenue levels, effective January 1. The tax rates are set at 0% for revenues up to 500 million HUF, 2.5% for 500 million to 10 billion HUF, 4.5% for 10 to 40 billion HUF, and 7.5% for revenues exceeding 40 billion HUF. The Hungarian Advertising Association (MRSZ) expressed concerns that a significant portion of advertising spending goes to global tech companies that may not be subject to this tax. They argue that the new tax could further harm the competitiveness of the domestic media market, which already faces various taxes. The advertising tax was initially introduced in 2014 but had been effectively at 0% since 2019.