From 2012, the transfer and use of road vehicles will be taxed according to new rules:
- the requirement for car drivers and operators (owners) living/seated in Hungary to register their cars with Hungarian registration plates will be tightened so that fewer qualify for an exemption. For instance, Hungarian residents will not be allowed to use foreign plated cars in Hungary for longer than a day (unless they are hiring from a ‘fleet-operator’ as explained below).
- new registration tax brackets will be introduced and tax rates will generally decrease. The lump sum tax will amount to between HUF 45,000 (c. €140) and HUF 4,800,000 (c. €15,000). Cars with purely electronic engines will no longer be subject to the tax.
- fleet operators leasing foreign registered vehicles for more than a day in Hungary will be liable to pay registration tax on a daily basis for the duration of the lease period. A fleet operator is any business which leases vehicles, has its registered seat within the EEA, has more than 100 vehicles with foreign plates on 1 January 2012 and derived at least 75% of its net sales revenue for the previous tax year from vehicle leasing.
- company car tax rates will vary between HUF 7,700 (c. €24) and HUF 44,000 (c. €140) per month, depending on the power output and the environmental classification of the vehicle. These are significantly more than current rates.
- transfer tax on the acquisition of vehicles will vary between HUF 300 (c. €0.95) and 850 (c. €2.7) per kW, depending on its age and power output, and not (as now) on its cylinder capacity.
- input VAT on vehicle lease fees will become deductible as long as the vehicle is used for a taxable economic activity
- an ‘accident tax’ will be introduced for anyone subject to mandatory motor vehicle liability insurance. The tax rate per vehicle will be equal to 30 % of the annual insurance fee, capped at the daily amount of HUF 83 (c. €0.26), to be collected by the insurance company with the insurance fee.
These rules appear in the 2012 tax bill that was recently passed by the Hungarian Parliament. The majority of the new rules will apply from 1 January 2012, subject to official publication of the Act.
