Major changes in vehicle taxation 2012
Posted: 10.01.2012
Last updated: 09.02.2012
Author: Budapest Consultans Kft.
Tag: passenger car, company car tax, engine power, foreign registration plate

New rules are effective for company cars from begin of this year. A company may pay just even a threefold amount for a company car owned and operated by the company. Dues for automobiles have typically grown, however, there are changes concerning registration tax favourable definitely for tax payers.

Company car tax
As of 1st January 2012, company car tax is calculated according to new rules. Instead of the present rules, the monthly tax shall be defined not only on the basis of the engine's cylinder capacity but taking the power of the engine in kW and the environmental category into account.

According to the previous rules, the monthly company car tax was 7 thousand HUF up to a cylinder capacity of 160x00 cm3 and 15 thousand HUF for other passenger cars.

In the car registration document, vehicle power is indicated under code P.2 and environmental category under code V.9.

According to the new rules, tax rates are as follows:
Monthly amount of company cart tax
Car engine power (kW) Environmental category
for classes 0-4 for classes 6-10 for classes 5, 14-15
0-5016 500 HUF8 800 HUF7 700 HUF
51-9022 000 HUF11 000 HUF8 800 HUF
91-12033 000 HUF22 000 HUF11 000 HUF
above 12044 000 HUF33 000 HUF22 000 HUF

Please find a comparison for illustrating changes of the monthly tax on some practical samples:
Change of monthly company car tax in 2012 as compared to 2011
ModelYear of constructionCylinder capacity (cm3)Power (kW) Environmental categoryTax 2011 (HUF/month)Tax 2012 (HUF/month)Change (HUF/month)
Mazda 520061995105 1015 00022 000+7 000
Opel Astra20081910110 1015 00022 000+7 000
Ford Focus2006168674 1015 00011 000-4 000
Volvo S6020072401136 1015 00033 000+18 000
Fiat Fiorino2009124855 107 00011 000+4 000
Ford Mondeo2001159766 27 00022 000+15 000
Mitshubishi Colt2005133270 97 00011 000+4 000

Company car tax shall be defined within self-taxation (comprising tax determination, tax return and tax payment in this case) every quarter for each month of the calendar year relevant for tax liability. Tax returns shall be submitted to the state tax authority NAV by 20. day of the month following the quarter, and tax shall be paid to the account no. 10032000-01076167 (NAV Cégautóadó bevételi számla - NAV Company car tax account) kept with the Hungarian Treasury by this same date. In 2012, company car tax returns shall be submitted - for all tax payers - using form no. 1201.

Incident tax
It will be introduced as a new tax type as of 1st January 2012. The tax basis is the annual car liability insurance premium. The tax rate is 30% of the tax basis, however, no more than 83 HUF a day. This tax is collected and transferred to the tax authority by the insurance companies together with the insurance premium.

Registration tax
The tax rate will be decreased for all passenger cars, however, taking environmental aspects into account; the largest reduction can be observed in the case of most environment-friendly (new, max. one-year-old) cars.
Tax liability originates also from renting a passenger car of a foreign passenger car fleet operator by an inland person. Tax is to be defined by the customs clearance authority.

Rates of administration dues
Car engine power (kW) Car age (year)
0-3 4-8 8+
above 1201 200900720
Administration dues
Also calculation of fee for car ownership transfer changes; the present cm3-based calculation will be replaced by a tax definition on the basis of engine power and car age. The rates change so that the fees to be paid grow with the increase of engine power and reduction of car age.

Until now, the fee was 18 HUF/cm3 up to 1890 cm3 and 24 HUF/cm3 above. As of 2012, the rates are as follows:

Use of foreign registration plates
The rule saying that releasing to traffic of a vehicle with foreign registration plate to be operated in inland shall be started by the inland operator of the vehicle within max. 30 days after acquisition of property or import date of the vehicle.
However, a vehicle can only run in road traffic with a Hungarian registration document and plate if

a.) the operator of the vehicle is an inland operator according to the law, unless the operator is a non-natural person pursuing its regular activity in a foreign country where its industrial premises (subsidiary) are registered, or

b.) the driver has a residence in Hungary except for
- the driver's usual residence is not in Hungary,
- the driver uses the vehicle shorter than one day in territory of Hungary, and the operator has licensed the usage of the vehicle in a written document containing the time of handing over the vehicle,
- the driver uses the vehicle in its regular work outside the territory of Hungary.

In a control procedure, fulfilment of the extraordinary conditions shall be certified by the operator of the vehicle and driver of the vehicle in a public document or private document with full authenticity. Infringement of the law can be fined by a penalty ranging from 10 thousand to 800 thousand HUF.
The fulfilment of the payment liability of registration tax originating from renting a passenger car of a foreign fleet operator by an inland person shall be confirmed by the certificate issued by the customs clearance authority. 

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