On 15 August 2014 a new act (Act no. 22 of 2014) entered into force in Hungary, setting out the rules of a new tax category: advertisement tax. According to the act, an advertisement is subject to the tax if it is published beside others (i) in any media service, (ii) in newspapers or periodicals published or distributed in Hungary and mainly in Hungarian, or (iii) on the Internet, mainly on a Hungarian language website or mainly in Hungarian. The tax shall be paid by (i) media-content providers who are deemed established in Hungary, (ii) media content providers whose daily program time is made up of at least 50% Hungarian language content in Hungary, (iii) the publisher, in the case of newspapers or periodicals, and (iv) in the case of advertisement published on the Internet, the announcer. If these entities do not declare that they are subject to this tax, either on the invoice or in the agreement regarding the placement of the advertisement, and fulfil this payment obligation, then the contract party who ordered the advertisement shall pay the tax.
The tax is based on the total net advertisement revenue. The applicable percentage for calculating the amount of tax payable will vary between 1% and 40%, depending on the level of taxable income.
The act was drafted in a hurry and as a consequence contains several unclear terms and definitions, therefore modifications are expected in the near future.