Smaller telecommunication companies and car wholesalers can be relieved, and at the same time mail-order businesses and internet merchants are becoming taxpayers according to the last modifications of the new crisis tax regulations. Monday evening the Parliament finalized its decision on the new tax levied on the energy, telecommunication sector and retailers.

Even the last moments of the final vote, the government had brought changes to the regulations. Some of the changes are intended to clarify that the new tax will be deductable from the corporate tax base as it was not indicated before.

Tax base limits have been modified as well for the telecommunication sector together with the applicable tax rates: thus companies with net sales below 100 billion HUF (appr. 36.4 million EUR) will get exemption from the tax. Between 100 (appr. 36.4 million EUR) and 500 billion HUF (appr. 1.8 billion EUR) the tax rate will be 2.5%, while above the upper limit 4.5% has to be paid by the biggest companies.

The tax levied on retailers has one big change which exempted the car wholesalers from tax payment, however mail-order businesses and internet merchants became subject to the tax from next year.

One general change has been made on the original proposal which regards to the tax base. Originally the tax base was the net sales of 2009 tax year. It has been changed to 2010, however since the final 2010 figures will arrive only in the middle of next year, the new regulation obliges the companies to pay advances according to the 2009 year net sales data till 20 december 2010. Afterwards in light of the final figures of 2010 the difference will be payable next year. This rule follows the general practice of the withholding tax system which means that the difference between the advance paid till 20 December has to be at least 90% of the actual payable tax. Higher difference is subject to 20% of default fines.  

As we have mentioned in our previous article, companies and experts predict a price increase as a direct effect of the tax. According to the statements, out of the total 164 billion HUF (appr. 600 million EUR) expected tax revenue 60 billion HUF (218 million EUR) will be directly paid by consumers, while investments of around 40 billion HUF (appr. 145 million EUR) is planned to be postponed.

Out of the 1,500 retailers 11 companies are expected to pay 90% (37 billion HUF) of the total tax revenue, while in the telecommunication sector 15 companies will pay more than 95% of the total sector obligation. In case of the energy sector, rules did not change significantly in the last moment. Here the 20 biggest companies will cover 85% of the appr. 31 billion HUF (appr. 113 million EUR) tax revenue.