Hungary struggles to attract investment due to the limited size of it oil & gas sector relative to its international competitors. This is offset to some extent by EU membership remains an unknown factor, especially when considering the "top down" approach to legislation.
May 21, 2021
Europe - Central
Simple Concession-based fiscal regime. Royalty rates vary with production rates. In addition to corporate income tax, there is an additional profits tax (the Solidarity tax) plus some local business taxes and indirect taxes. There is no state participation.
After the April 2018 national election, Prime Minister Victor Orban’s ruling Fidesz party retained its leadership and won a majority of votes in the 2019 EU Parliament elections. The Government of Hungary remains focused on being an export-oriented economy facilitating Foreign Direct Investment (FDI) and a further lowering of taxes. It remains to be seen what will happen with public sector activity. In 2020 the Government of Hungary passed legislation which requires investors outside the European Economic Areas to request approval from the Minster for Innovation and Technology for new investment exceeding a certain threshold and participation. The law will remain in force until December 31, 2020.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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