Tax minutes – 2024/3. – Main considerations of domestic top-up tax based on GloBe rules

As of 2024, members of multinational groups or large domestic groups of companies whose annual net turnover as shown in their consolidated accounts exceeds €750 million in at least 2 of the 4 years preceding the year under review may become liable to the domestic top-up tax liability.

As the experts from the Ministry of Finance pointed out during our tax conference last week, there are still issues that need to be decided and confirmed at international level regarding the practical application of the rules, but it is strongly recommended that all businesses concerned start preparing as soon as possible.

Although the first tax return for domestic group members liable to pay domestic top-up tax under the new rules will be due at the end of May 2026 at the earliest, it is highly recommended to consider the main questions and prepare preliminary calculations now to ensure a prudent planning.


  • Do we have all the information we need to decide whether our business is affected by the new domestic top-up tax liability?

  • How shall we determine the effective tax rate considering the domestic rules? To what extent is it necessary to take individual group members into account when calculating the domestic top-up tax?

  • If the pre-calculated effective tax rate is below 15%, can we adjust the rate by special items e.g. deferred tax? If we want to apply the adjustment with deferred tax, the deferred tax items must be included in the 2023 accounts. (Deferred tax has been implemented since 31 December 2023 in the Hungarian Accounting law.)

  • To what extent would the benefit of substance-based income exclusion (eligible payroll costs and eligible tangible assets) reduce our liability? In some cases, substance-based income exclusion may reduce the top-up tax liability even to zero.

  • Is an exemption applicable? There are more exemption options available to businesses. Which type might be relevant for our business?

  • Is the tax amnesty for participation exemption relevant for our business? Companies wishing to use this amnesty can do so at the latest by the deadline for filing their 2023 corporate tax return.

  • Has the country of the foreign parent company implemented global minimum tax rules from 2024?  To avoid possible double taxation, close cooperation and coordination between the parent company and the group members should be initiated as soon as possible.

  • What is the quantified impact of the tax benefits claimed by our business on the effective tax rate and thus on the top-up tax liability? Is the new R&D tax credit relevant for our business?

  • As a company with a tax year other than calendar year, when will we first become liable and when is it advisable to start preparation?

As you can see from the above, careful preparation requires close cooperation with the other members of the company group, timely collection of the necessary data and starting the preliminary calculations as early as possible. 

A default penalty may be imposed for failure to comply with the obligations related to the domestic top-up tax, with a HUF 5 million fine for failure to report data and a HUF 10 million fine for failure to file a return. The legislation does not provide for a fine in transitional years, i.e. for tax years starting before 31 December 2026, but makes this conditional on the group member having acted as expected in the given situation. This condition also implies that prudent preparation is expected from all undertakings concerned.

If you have any questions related to the above-mentioned issues, our tax team is ready to assist you.



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Szarvady Zsófia Irodavezető
Head of Back Office

Zsófia Szarvady

Zsófia Szarvady graduated as an economist in 2012 at the Budapest Business School with a bachelor’s degree and in 2015 at the Budapest Metropolitan University with a master’s degree. During her studies and the following years she gained extensive experience in the Front Office department of InterContinental Budapest. In 2016 she joined PwC Hungary, where she strengthened the support team as team assistant, personal assistant and financial assistant. She joined KONDOR Group in February 2019 as an office manager and currently holds the position of Head of Back office.

Head of OD and HR, Partner

Lili Polgár

Lili Polgár is HR Business Partner economist (summa cum laude), internationally accredited Human Synergistics consultant in leadership development, organisation developer. She has 20 years of experience in organization and leadership development from the SME sector through state-owned companies to multinational companies. As a consultant, she focuses on developing executives, creates and coordinates change management processes and supports leaders to cooperate and teamwork. Co-founder of KONDOR OD, Partner of KONDOR Group since 2019.
Puskás Zsuzsanna Könyvelés és bérszámfejtés üzletágvezető
Head of Accounting and payroll

Zsuzsanna Puskás

Zsuzsanna Puskás obtained the qualification of a certified public accountant in 2000 after graduating as a business administrator and a small business economist. She then continued her studies at Szent István University, majoring in economics. After gaining nearly ten years of accounting and taxation experience, she worked as an accounting team leader at one of the ten largest Hungarian accounting service providers, and at the same time she worked on the development and operation of the quality management system. She started his own accounting services company in 2011 and then joined the KONDOR Group in 2018 as the head of the accounting business.

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József Vizer

József Vizer graduated in 2003 as an economist at the Budapest Business School, Faculty of Finance and Accountancy. He qualified as a chartered accountant in 2003, as a tax advisor in 2006 and as a chartered tax specialist in the field of value added tax and international taxation in 2012. After having gained nearly ten years of experience in the field of tax administration and tax advisory, since 2013 he worked in various leadership positions at Lidl Hungary and then at RSM Hungary. He joined KONDOR Group in 2020 as the Head of Tax Advisory.

Pásztor László 2005-ben végzett közgazdászként a Pécsi Tudományegyetemen, adótanácsadói bizonyítványát 2007- ben szerezte meg. 2011-ben a közvetlen adók területén nemzetközi adószakértő címet nyert el. Több, mint egy évtizede foglalkozik nemzetközi adózással és transzferárazási kérdésekkel. A TranszFAIRár című könyv társszerzője, a TP GROUP társalapítója, szakmai vezetője. 2017-től a KONDOR Csoport Partnere.
Tax expert, Head of TP and Financial Advisory, Partner

László Pásztor

László Pásztor graduated as an economist at the University of Pécs in 2005 and obtained his tax advisor certificate in 2007. In 2011, he earned the international tax expert title in the field of direct taxes. He has been dealing with international taxation and transfer pricing issues for more than a decade. He is co-author of the book, TranszFAIRár, co-founder of TP GROUP, and Head of TP at KONDOR-TP. From 2017, he is a Partner of KONDOR Group.

Kondor Bence Barnabás 2002-ben végzett jogászként. A PhD képzéssel párhuzamosan kezdte meg tanulmányait a Budapesti Corvinus Egyetem Gazdálkodástudományi Karán (2002-2007). 2008 óta foglalkozik transzferárazással, valamint vállalkozás- és üzletfejlesztéssel. A TranszFAIRár című könyv társszerzője. A TP GROUP a KONDOR Csoport és a VISEGRAD Consulting Group alapítója.
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Bence Barnabás Dr. Kondor

Bence Barnabás Dr. Kondor graduated in 2002 as a lawyer. In parallel with his PhD studies, he began his Business Administration studies at Corvinus University of Budapest (2002-2007). Since 2008, he has been dealing with transfer pricing and business development. He is co-author of the TranszFAIRár Book. He is the founder of TP GROUP, KONDOR Group and VISEGRAD Consulting Group.

Bársony Farkas pénzügyi jogász, hosszú ideig a GE Hungary ügyvezető igazgatója és több GE üzletág globális és EMEA adóügyi igazgatója. Legutóbb a PwC CEE TLS Partnere. Az Amerikai Kereskedelmi Kamara (AmCham Hungary) elnöke. Munkája elismeréseként a Magyar Érdemrend Lovagkereszt kitüntetettje. A Nemzeti Versenyképességi Tanács tagja. A VISEGRAD Consulting Group társalapítója, 2019-től a KONDOR Csoport Partnere.
CEO, Partner

Farkas Dr. Bársony

Farkas Dr. Bársony is a finance lawyer (LL.M., MBA), was the managing director of GE Hungary and the (EMEA & Global) tax director of several GE businesses. Following that he was appointed as Tax and Legal Services Partner at PwC CEE. He was the President of the American Chamber of Commerce (AmCham Hungary) between 2016 and 2020. In recognition of his professional work, he was awarded the Knight’s Cross of the Order of Merit of the Republic of Hungary. He is a member of the National Competitiveness Council. Co-founder of VISEGRAD Consulting Group, and currently the CEO & Partner of KONDOR Group since 2019.