De minimis aid for taxpayers subject to advertisement tax

The de minimis rules of the Hungarian Advertisement Tax Act came into force on 1 July 2017. From that date, HUF 100 million are tax exempt from the net revenue deriving from the taxable activity of the advertising publisher.

However, it is strongly advised to take into consideration the rule which clarifies that this benefit is defined as de minimis aid. The de minimis aid can only be used if the taxpayer has a free de minimis frame amount and the taxpayer would like to allocate this amount for this purpose. If the tax base of the advertising publisher taxpayer exceeds HUF 100 million and would like to use the de minimis aid, the taxpayer has to pay the advertisement tax only after the part of tax base exceeding HUF 100 million. From the 1^st of July 2017 the tax rate is 7.5% of the tax base.

In the case of those advertising publishers whose net revenue deriving from taxable activity does not exceed HUF 100 million and would like to use the de minimis aid, the taxpayers will not have tax payment obligations in respect of advertisement tax. In this case, they don’t have to submit advertisement tax return either.

It is important to note that on the basis of the decree no. 1407/2013/EU, taxpayers have to make a declaration from the amount of de minimis aid applied. This reporting obligation can be fulfilled on the form REKNYIL which is available on the website of the Tax Authority.